Manila: The Department of Agriculture (DA) assured the public on Tuesday that rice retail prices are expected to remain stable in the country, despite ongoing fuel price increases.
According to Philippines News Agency, DA spokesperson Assistant Secretary Arnel De Mesa, during a phone interview, addressed concerns that rising oil prices might lead to increased rice inflation. He stated, "We're not expecting or seeing huge increases sa presyo ng bigas (in rice prices)."
As of Monday, the prevailing price of premium imported rice in Metro Manila stands at PHP50 per kilogram, while imported well-milled and regular-milled rice are priced at PHP48 and PHP45 per kilogram, respectively, as reported by the DA - Bantay Presyo. Local rice prices vary, with premium rice ranging from PHP48 to PHP60 per kilogram, well-milled rice from PHP40 to PHP56 per kilogram, and regular-milled rice from PHP38 to PHP50 per kilogram.
De Mesa explained that the increase in oil prices does not directly translate to a rise in rice prices in local markets. He noted, "Hindi siya automatic na nagtataas, at saka kung mayroon mang pagtaas sa presyo ng produktong petrolyo, ang nakakaapekto diyan 'yung maliliit na movement (It does not automatically increase, and even if there is a fuel price adjustment, its effect will be seen in the small movements in logistics)."
He further clarified that while fuel price surges impact input and logistics costs in local palay (unhusked rice) production, the effect on rice prices is minimal. "Kasi ang palay naman, mino-move iyan ng maramihan. So 'yung additional cost per unit kilo, napakaliit. Hindi siya malaki (The palay is moved in bulk. So, the additional cost per unit kg. is very small. It's not that significant)," he added.
Even with traders adhering to the National Food Authority's (NFA) buying price of PHP21 per kilogram for wet and fresh palay during the wet harvest season starting in September, retail prices are expected to stay within the standard range of PHP50 to PHP55 per kilogram for well-milled rice. This stability is attributed to the country's ample supply, bolstered by a robust palay harvest in the first semester and ongoing rice imports.
In August, the Philippine Statistics Authority (PSA) reported a record-high palay harvest of 4.63 million metric tons (MT) for the second quarter from April to June, marking the highest volume for this period in nearly four decades. This strong output offset the weaker palay production in the first quarter, maintaining a robust overall first-semester production of 9 million MT. Additionally, rice import volume since January has reached 3.609 million MT as of August 20, according to the Bureau of Plant Industry.
