Farmgate Prices of Palay Increased Last May

Last May, the farmgate price of unhusked rice or palay rose by 1.6%. This price increase is a welcome development for rice farmers burdened with low prices.

In May 2021, the average farmgate price of palay was at ₱16.97 per kilogram. For May 2022, the farmgate price of palay was recorded at ₱17.24 per kilogram according to the data collected by the Philippine Statistics Authority (PSA).

Of 16 regions, 11 of these experienced higher annual increases which added to the overall yearly growth.

Data from the PSA shows that Western Visayas recorded the highest yearly increase of 10.2%. The second highest was recorded in the Bangsamoro Autonomous Region in Muslim Mindanao (BARMM) with an increase of 7.9%.

In the past months, PSA noted negative annual growth rates for Ilocos Region, Central Visayas, Cagayan Valley, and Davao Region. However, during May, PSA recorded positive growth rates for these areas.

MIMAROPA on the other hand was noted to have the biggest decrease at 5.8% and followed by Calabarzon at a decrease of 4.9%.

Former Secretary of Agriculture and Federation of Free Farmers (FFF) Chairman Leonardo Montemayor said that the farmers “have been suffering from low prices in the last three years due to excessive imports.”

He adds that “Although the increase may be small, it will still help farmers cope with the situation and hopefully encourage them to continue producing,”

“Some traders may also be anticipating a spike in prices (both domestic and international) later this year when the ‘food crisis’ unfolds, so there is increased demand for palay at this time,” he says.

Source: Philstar