The increase in palay production has not significantly improved the lives of rice farmers as farm gate prices have yet to hit their 2018 highs, according to seasonally-adjusted data from the Philippine Statistics Authority.
Data showed that from a total output of 18.93 million metric tons in 2018, palay output hit a high of 19.83 million metric tons in 2021 before slipping to 19.76 million metric tons last year.
But farm gate prices did not follow the same trajectory.
Average quarterly farm gate prices compiled by the PSA showed per kilo of palay sold for P20.86 in the third quarter of 2018 before sinking to a low P15.86 in the last quarter of 2019 due to strong harvest.
Farm gate price rose to P17.83 a kilo in the second quarter of 2020, when the government started a lockdown to prevent the spread of COVID-19. Slower economic activity due to the pandemic pushed down prices to P16.37 a kilo in the first quarter of 2021 before starting its recovery.
In the fourth quarter of last year, farm gate price of palay averaged P18.18 a kilo, still off the high seen in 2018.
