12-8-2023 (MANILA) The Philippines is set to witness a drop in rice prices as the country has received lower export quotations from Vietnam, one of the top rice exporting nations. Additionally, negotiations with India, another major rice exporter, are underway to procure the staple grain. The Department of Agriculture (DA), headed by President Marcos, announced these developments following a meeting at Malacañang.
According to DA Senior Undersecretary Domingo Panganiban, Vietnamese exporters have quoted prices that are $30 to $40 lower than those offered to Filipino private traders. This reduction in prices is expected to have a positive impact on the affordability of rice in the country.
Furthermore, the DA is working closely with the Indian government to facilitate the export of rice to the Philippines on humanitarian grounds. This collaboration aims to secure better terms for an additional 300,000 to 500,000 metric tons of rice imports this year. The increased importation will not only contribute to lowering prices but also bolster the national rice inventory, which is already sufficient to meet the country’s needs for 52 to 57 days, even without additional imports.
During a recent meeting with DA officials and traders, President Marcos assured everyone that the rice situation in the Philippines is manageable and stable. He emphasized that there is an ample supply of rice, both in the present and in anticipation of the El Niño phenomenon expected next year. These reassurances from the government aim to alleviate concerns regarding rice availability and affordability.
The DA, represented by Undersecretary Merceditas Sombillo, has projected an importation of 1.3 million metric tons of rice. However, the specific dates for the importation have yet to be determined. Sombillo also mentioned that based on data from the Philippine Statistics Authority, the projected ending stock for 2023 is estimated to be 1.96 million metric tons, sufficient for 52 days. An alternative projection of 2.12 million metric tons, which would last for 57 days, has also been considered.
Despite the Rice Granary of the Philippines being located in Nueva Ecija, a farmers’ group confirms that retail prices of rice in the region are increasing. Chairman Dan Alfaro of the Bongabon East Farmers and Fisheries Service Cooperative revealed that retail prices range between P52 and P60 per kilo. This price disparity highlights the lack of control farmers have over the retail prices of rice after selling their harvest to traders.
The Federation of Free Farmers has expressed concern over the spike in rice prices, comparing it to the rice crises experienced in 1998 and during the Duterte administration in 2018. Current monitoring by the DA in Metro Manila markets shows that the retail price of local regular milled rice has reached P49 per kilo, while local well-milled rice is priced at P52 per kilo, local premium rice at P56 per kilo, and local special rice at P65 per kilo. Meanwhile, imported well-milled rice is being sold for as high as P46 per kilo, imported premium rice for P52 per kilo, and imported special rice for P65 per kilo.
Responding to the increasing farmgate price of palay, the Kilusang Magbubukid ng Pilipinas (KMP), a farmers’ group, has called for a congressional investigation into possible price manipulation. KMP Chairman Danilo Ramos cited reports of millers in Bulacan buying palay at prices as high as P36 per kilo, which has caused a surge in rice prices. Ramos also attributed the implementation of the Rice Liberalization Law (Republic Act 11203) as a factor contributing to rising prices and urged the Marcos administration to reconsider its importation policy in light of the volatile rice supply and price situation.
To alleviate the tight supply in the local market, two million sacks of imported rice from Vietnam have recently arrived. Rice traders in Golden City Business Park and Intercity Industrial Estate in Bocaue, Bulacan, have reported an increase in palay prices from an average of P20 per kilo in March to P33 to P34.50 per kilo in August. This surge in palay prices has subsequently led to higher rice costs in the local market.
