Palay prices continue to decline

MANILA, Philippines - The average farmgate prices of palay as well as the wholesale and retail prices of rice continued to fall slightly in the third week of September, the Philippine Statistics Authority (PSA) reported over the weekend.

Farmgate prices of palay averaged at P20.85 per kilogram during the monitoring period of Sept. 17 to Sept. 23, lower by 0.86 percent from the previous week. This, however, was higher by 16.03 percent from the same period last year.

Palay prices have been falling since the third week of August on slow buying by traders who have not yet disposed of the existing volume in their warehouses. Before the onset of the lean season, traders procured palay at higher prices, averaging at P24 per kilogram.

Downtrends were also seen for wholesale and retail prices of well-milled rice during the monitoring period.

The average wholesale price of well-milled rice fell by 0.12 percent to P41.06 per kilogram from the previous week. It was higher, however, by 10.82 percent in the same period last week.

Retail prices of well-milled rice fell by 0.43 percent to P43.73 per kilogram from the previous week. This, however, was up by 11.41 percent from P39.25 per kilogram in the same period last year.

The average wholesale and retail prices of regular-milled also fell during the monitoring period.

The average wholesale price of regular-milled rice fell by 0.39 percent to P38.08 week-on-week. This was up, however, by 12.03 percent in the same period last year.

Retail prices of regular-milled rice ave-raging at P40.54 per kilogram, was down by 0.34 percent from the previous week’s average quotation. Year-on-year, this was higher by 12.49 percent.

Agriculture Undersecretary for field operations Edilberto de Luna said farmgate prices of palay are expected to range from P20 to P21 during the prevailing lean season which is expected to last until October.

The National Food Authority (NFA) aims to bring in by December some 500,000 metric tons (MT) of imported rice for buffer stock, delivery of which is pushed to begin in October.

This is seen to further drive down the high prices of rice.

Thailand has so far submitted the best offer for the supply of 300,000 MT which would be procured under a government-to-government purchase agreement.

Vietnam is urged to match Thailand’s offer so it can supply the balance of 200,000 MT.

The NFA Council is still deliberating on the offers and has not yet come up with a decision since the submission of offers last Sept. 15.