The average cost of producing palay in the Philippines declined to P13.38 per kilo in 2023, down 11 percent from P14.98 per kilo in 2022, according to data from the Philippine Statistics Authority.
The country achieved a record palay harvest of over 20 million metric tons last year, a milestone unlikely to be surpassed this year due to climate challenges such as droughts caused by El Niño and stronger typhoons.
Regionally, Central Luzon reported the lowest production cost at P11.60 per kilo, down 9.7 percent from P12.85 per kilo in 2022. In contrast, Central Visayas continued to have the highest cost of production at P18.70 per kilo, although this was 17 percent lower than the P22.43 per kilo recorded in 2022.
The average production cost per hectare increased to P55,814 in 2023, up by 2.7 percent from P54,373 the previous year, primarily due to higher input costs. The Bangsamoro Autonomous Region in Muslim Mindanao had the lowest production cost per hectare at P41,446, down from P44,944 in 2022. Cagayan Valley, however, recorded the highest production cost per hectare at P72,255, up from P69,537 in 2022.
Net average returns—gross returns minus production costs—more than doubled to P27,033 per hectare, up from P10,836 in 2022. Central Luzon, which includes top rice-producing provinces like Nueva Ecija and Tarlac, recorded the highest net returns at P50,198 per hectare, up from P25,022 the previous year.
The PSA noted that the cost structures are based on data from the 2022 Survey on Costs and Returns of Palay Production.
