Thursday, August 28, 2008 Rice prices may reach P40 a kilo By Carlo P. Mallo
THIS season's commercial rice is expected to reach only at P40 a kilo, even with the onslaught of the so-called lean months of the local rice production.
Department of Agriculture (DA) regional executive director Roger Chio said there is ample supply of rice to last through the lean months.
"The price of rice is already steady, should it increase, it won't be higher than P40 per kilo for the commercial rice," Chio said.
The highly speculated price increase for July, August, and September did not materialize due to the flooding of the government subsidized National Food Authority (NFA) rice in major markets all over Davao Region.
"But the NFA must remain to be aggressive," Chio said.
Last April to June, the price of commercial rice in Southern Mindanao and in its neighboring areas skyrocketed from P34 per kilo to as high as P51 per kilo.
This triggered a domino effect of increase in demands, longer queues at the various NFA stalls, and to some extent, panic buying on the consumer side and hoarding on the traders and millers end.
"The traders heavily speculated on the possible shortage of rice during the lean months, which caused the upsurge in prices," Chio said. "It was the millers and traders."
Chio is confident that the lean months this year will end without much effect on the market price of commercial rice due to the steady supply available.
"Cotabato has already started harvesting, others will follow soon," he said.
