Photo by Panay News
Recent statements from the Philippine Chamber of Agriculture and Food Inc. (PCAFI) have raised alarm bells over the projected increase in rice prices, with estimates suggesting that prices could surge up to P4 per kilo by mid-September. PCAFI President Danilo Fausto has indicated that a potential decrease in rice prices may occur as the harvest season kicks off in the second week of September.
“We expect that the retail prices of rice will go down once the harvest starts,” Fausto reassured.
This expected surge in retail rice prices is largely attributed to the higher costs of imported rice from Vietnam, a country responsible for supplying approximately 90 percent of the Philippines’ rice imports, according to Fausto.
Citing feedback from rice importers, Fausto highlighted that Vietnam is not honoring previous contracts, even though traders have already provided downpayments. Current data shows that imported rice from Vietnam now stands at $540 per metric ton, roughly equivalent to P30 to P32 per kilo. Earlier this year, prices were confined to a range of $420 to $440 per metric ton, around P23 to P24 per kilo landed cost.
Fausto also pointed out that the current buffer stock of rice is controlled by commercial traders, rather than being in the hands of farmers.
In an earnest plea to President Ferdinand Marcos Jr., Fausto urged for heightened recognition and prioritization of the vital agriculture sector.
Beyond these concerns, PCAFI expressed a broader hope that the government would extend support to farmers in various regions, aiming to enhance agricultural productivity not only in Central Luzon and Cagayan Valley but also across the nation.
“There is a significant disparity in government assistance, particularly in terms of technology and high-yield crops, which is heavily focused on Central Luzon and Cagayan Valley. The Department of Agriculture should also address the needs of other regions,” Fausto emphasized.
As the impending price hike raises worries about its impact on farmers and the agriculture sector as a whole, collaboration between stakeholders and government officials is being encouraged to find effective solutions that ensure a stable and sustainable rice market in the Philippines.
