Early harvests by farmers in Nueva Ecija has helped bring down the price of palay at farm gates, the Department of Agriculture (DA) said.
Palay prices are also expected to fall further late this month and in October as the harvest season peaks.
A DA price survey in Nueva Ecija last week show prices ranging from P17 and P18 per kilo which far and could drop to as low as P16 or P15 per kilo when the harvest begins to peak mid-September.
Sebastian said palay prices were as a high of P22 to P25 per kilo in June and July that prompted farmers to seek government intervention to get better rates for their produce and not be at the mercy of traders, agents and millers who dictate prices.
The DA said farmers also lament that palay production had been ruined by monsoon rains and typhoons in places like Licab, Quezon, Zaragoza and other areas.
Against this background, the Foundation for Economic Freedom (FEF) appealed to the Tariff Commission to cut 35 percent tariff for imported rice to only 10 percent to help address the supply gap, food inflation and other key consumer items.
“The protectionist 35 percent rice import tariff is the most significant driver of the cost of imported rice. A back-of-the-envelope calculation suggests that duty-free importation of rice, even at $600 per ton, should bring the landed cost of imported rice at parity with wholesale well-milled rice of P39 per kilo, which is consistent with a retail price of P45 per kg the current well-milled rice price ceiling,” the FFF said.
The Kilusang Magbubukid ng Pilipinas (KMP), given the rising price of the staple, urged government to strengthen and prioritize the rice industry.
“We do not see the rice situation easing in the next months, based on global and local indicators. All sectors of society, especially those feeling the brunt of incessant rice and food price hikes should assert for the junking of the Rice Liberalization Law and the reinstatement of state regulation and control over the rice industry,” Ronnie Manalo, KMP secretary general, said in a statement.
KMP said that based on the Food and Agriculture Organization’s rice price index, global rice prices increased nearly 10 percent in August to a nominal 15-year high aggravated by trade disruptions due to India’s export ban of non-basmati rice in July.
Public markets in the National Capital Region sell well-milled rice at P45 per kilo and regular rice from P40 to P52 per kilo.
Imported well milled rice sell for P45 per kilo and regular rice from P41 to P45 per kilo.
Imported rice sell from P53 to P65 per kilo and the special or premium variety from P55 to P58 per kilo.
Locally-grown special variety rice sell from P54 to P65 per kilo and premium rice from P49 to P60 per kilo.
