Rice price impact balance needed
THE ability of consumers to access food at affordable prices must also be considered amid higher prices of palay (unmilled rice) benefiting local farmers, a top official of the American Chamber of Commerce of the Philippines (AmCham) said.
AmCham Agribusiness Committee Chairman Christopher Matthew Ilagan also told The Manila Times that the key to providing affordable food for consumers is for farmers to produce more volume from the same area of land.
The Philippine Rice Research Institute (PhilRice) reported last week that palay prices nationwide have risen to as high as P25 per kilo (kg), benefiting producers of the staple.
“The recent rise in rice prices has seen the farmer benefit in the short term, while the consumers have started feeling the pinch on their wallets,” he said in a Viber message.
PhilRice-Philippine Rice Information System data showed that from July 31 to Aug. 6, 2023, the average price of fresh palay stood at P17.83/kg while dry palay was priced at P19.33/kg, benefiting early planters this 2023 wet season.
In June, the peak price of dry palay per kilogram reached P25 in Nueva Ecija; P24 in Bataan; and P23 in Bulacan.
Data from the Department of Agriculture (DA)-National Rice Program also showed that palay prices reached P17.69/kg for fresh and P19.73/kg for dry in March, higher than the P15.99/kg for fresh and P18.41/kg for dry palay in the same period a year earlier.
For Ilagan, the interest and welfare of consumers must also be considered amid higher palay prices, as their ability to purchase agricultural products is a food security consideration.
“Finding that balance between farmer livelihoods and consumer well-being is what should be pursued, but it takes time,” he said.
He emphasized that enhanced productivity of the rice sector is required in the medium to long-term.
“In the medium to long term, that requires enhanced productivity of the rice sector where farmer livelihood improvement is driven more by volume increases using the same hectarage while being able to sell their produce to consumers at still affordable rates,” Ilagan said.
“A sustainable agriculture sector is one where farmers are provided their fair livelihood while at the same time ensuring the larger consuming public has affordable, accessible and available food supplies,” he added.
