Even as the agricultural sector posted a substantial growth of 2.87 percent during the third quarter of the year, farmgate prices of palay or paddy rice continued its downward trajectory.

Based on a recent report by Philippine Statistics Authority (PSA), prices received by farmers during the July to September period decreased by an average of 6.33 percent.

“Price of palay went down by 26.49 percent as lower buying prices were offered by local buyers and traders,” the report read.

The state-run statistics body cited the influx of cheap imported rice as among the contributing factors of the drop in palay price. As mandated by the recently enacted Rice Tariffication Law, the government opened the trade industry to free trade.

Farmers belonging to the organized group Federation of Free Farmers (FFF) have lamented the continuous decline of palay prices, while pressing the government to impose safeguard duties on imported rice.

Under the WTO rules and Republic Act 8880 or the Safeguard Measures Act, general safeguard duties may be temporarily imposed on imports of rice, on top of regular tariffs, if there is an evident surge in rice imports that threatens the livelihood of rice farmers.

However, palay wasn’t the only commodity that registered a decline in prices. Corn also fell 7.32 percent due to the poor quality of grains and the lower buying price offered by traders.

There was a 36.38 percent cut in the price of sugarcane which was also attributed to the lower prices offered by traders. Prices of coconut dropped 21.01 percent due to the declining price of copra in the world market.

Meanwhile, reduced competition among local buyers and lower prices in the world market have resulted with the 3.60 percent drop in the prices of coffee while increased production translated to the 3.36 percent drop in the price of calamansi. Smaller sizes of calamansi produce and low buying prices from traders also contributed to the decline.

Onion prices contracted by 31.95 percent due to the poor quality of bulbs produced as a consequence of the heavy rains.

The price of garlic contracted by 9.05 percent as more stocks were also reported. Higher production and smaller size of heads harvested likewise led to the price cut of cabbage by 60.99 percent.