August Palay prices jump 30%

Palay prices rose nearly 30 percent year-on-year in August, giving rice farmers some buffer against higher fuel, transport and production costs, according to the Department of Agriculture (DA).

The Philippine Statistics Authority (PSA) reported that the national average price of dry palay reached P22.16 per kilogram in August, up 29.9 percent from P17.06 a year earlier. However, the price was down 1 percent from P22.39 in July.

Agriculture Secretary Francisco P. Tiu Laurel Jr. said the stronger farmgate prices could help sustain farmers’ planting decisions as production costs remain elevated and El Niño risks threaten farm operations.

Room to absorb increase in costs

Higher palay prices give our rice farmers some room to absorb the increase in fuel, transport, and input costs,” Tiu Laurel said. “We are cautiously optimistic that this will support their planting intentions despite the risk posed by El Niño in the months ahead.”

Most major rice-producing regions posted double-digit annual price increases. Ilocos Region recorded the largest gain at 54 percent, bringing its average price to P23.57 per kilo.

Central Luzon’s average price rose 32 percent to P20.86 per kilo, while Cagayan Valley increased 41 percent to P20.62. CALABARZON posted a 50-percent increase to P19.02.

Highest regional average

Central Visayas recorded the highest regional average at P28.07 per kilo, up 41 percent year-on-year.

Tiu Laurel, however, said some farmers failed to benefit from the price increase, particularly those in areas affected by the intensified Southwest Monsoon.

“Unfortunately, farmgate prices remained depressed in Habagat-affected areas as excessive moisture lowered the quality of harvested palay,” he said.