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Rice price hikes: No end seen

Staple to cost up to P45 per kg as palay sold at higher rates
/ 12:12 AM June 21, 2014

farmer

SAN JOSE CITY—Millers have been buying husked rice (palay) from traders at P26 per kilogram, which may push the prices of commercial rice in the market even higher in the coming months.

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“P26 had been the buying price offered by the traders. We are forced to buy (the palay at that price) otherwise we will run short of supply for our clients,” said Edgardo Alfonso, president of the 26-member San Jose City Rice Millers Association.

The traders, whose number surged during the peak of the harvest season from March to April, competed with rice millers in buying newly harvested grains, Alfonso said, adding that they are now selling the rice back to the millers after keeping the stocks for weeks.

The fresh palay harvest was bought at a farm-gate price of P19 to P21 a kg. In past harvest seasons, the buying price for the grains was P14 to P15 a kg.

“We were caught by surprise by the high buying price of palay that prevailed during the last harvest season,” Alfonso told the Inquirer.

He said the rice millers here bought only 70 percent of palay during the harvest season for their milling needs. The milled rice will have a high selling price because of the steep buying price of palay, he said.

“The P2 per kilogram price hike of rice now was the result of that (increased palay cost),” he said.

At the current P26 per kilogram price, the wholesale selling price of rice may increase from P39 to P45 a kg for premium commercial rice.

“Based on that simple computation, we will have an idea how much the selling price of commercial rice would be during the lean months,” Alfonso said.

Rice millers here supply about 30,000 bags of milled rice daily to their clients in Metro Manila, Southern Tagalog provinces and Cebu.

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In Laoag City, the Ilocos Norte garlic growers and processors announced they would expand their garlic plantations from 2,000 to 3,000 hectares.

Mergie Selga, president of the group of local garlic growers and processors, said she believed the high price of garlic in the market was due to low supply.

Selga said garlic growers sold their remaining stocks when prices went up to a high of P260 a kilogram in Ilocos region and P300 a kilogram in Metro Manila.

Following a meeting of the National Garlic Action Team, she said the group may welcome garlic importation in July to augment supply. Anselmo Roque, Inquirer Central Luzon; and Leilanie Adriano, Inquirer Northern Luzon

 

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TAGS: Agriculture, Consumer issues, rice
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