Thursday, 14 August 2025, 8:36 am

    Palay prices soften further in July as global price slips—PSA data

    The farm gate price of palay continued its downward spiral in July, dragged down by weakening global prices of the grain that have spurred a surge in rice imports.

    Data released Wednesday by the Philippine Statistics Authority (PSA) showed that the national average farm gate price fell 3.5 percent to P16.40 per kilo, down from P16.99 in June—and a steep 34 percent drop from P24.68 in July last year.

    Rice prices soared globally starting in 2023 amid fears that El Niño-induced drought would slash output. Strong demand from importing countries and India’s export ban on non-basmati rice further tightened supply and drove prices higher. India lifted the export ban in September.

    But with improved weather this year, robust harvests in major rice-exporting nations, and India’s overflowing stocks easing export restrictions, global rice prices have sharply declined. That has encouraged local importers to increase their purchase volumes, flooding the market and undercutting domestic farm prices.

    Rice from Vietnam that are 5 percent broken, according to data compiled by the Food and Agriculture Administration of the United Nations, was quoted at USD379 per ton in July, down from USD535 a ton in July 2024.

    To cushion the blow on Filipino farmers, President Ferdinand Marcos Jr. announced last week a two-month suspension of rice importation starting September 1. The move aims to stabilize prices, which have reportedly plunged to as low as P8 per kilo in some areas—far below the breakeven production cost even for the most efficient growers.

    PSA data highlighted regional disparities: palay prices in Cavite plummeted to P8.31 in July from P12.37 in June, while Bataan saw a drop to P9.34. The highest average was recorded in Davao City at P24.19, though prices above P20 were reported in only 7 of 93 monitored areas.

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