Sunday, July 06, 2008 Rice prices in Mindanao return to 'old levels'
TACURONG CITY -- Rice prices in Central Mindanao have declined to P35 a kilo from more than P50/kg a few weeks ago due to new palay (paddy rice) harvest and continuous infusion of government-subsidized rice stocks, a National Food Authority (NFA) official said over the weekend.
Antonio J. Adorable, NFA Central Mindanao assistant director, said there was a notable decrease in the retail and wholesale prices of rice in the second week of June, particularly in the markets of South Cotabato and Sultan Kudarat provinces.
The regional grains agency has organized the Palengke Watch Team to keep tab of the supply and price of rice in the area. This after the prices skyrocketed that saw thousands of people buying NFA cheap rice.
Regional NFA data showed that newly harvested milled rice can be bought at P35/kg, from P38/kg the previous week. The new price rice started last week.
As a result, old rice stocks sold at P46 to P48/kg are now at P44 to P45/kg and P44 to P46/kg are now sold at P40 to P42/kg, it added.
Wholesale price of rice currently ranges from a high of P1,900/bag for old stocks and a low of P1,600 for newly harvested milled rice, the regional office said.
"Wholesale and retail prices of rice on the second week of June have significantly gone down compared to prices in the last week of May to the first week of June," Adorable noted.
The decrease in prices and increase in the volume of rice in the markets can be attributed to the massive infusion of NFA rice into the markets recently, he said.
Adorable said the declining price trend was boosted by the onset of palay harvest, although this is not yet the peak harvest season, especially in the areas within the main water ways of irrigation canals and those with water pumps.
The inflow of commercial rice from Manila and other regions in the country also contributed to the decline of prices of rice, Adorable said.
In North Cotabato, where a kilo of fancy rice variety had breached the P50/kg, prices of rice plunged by 10 percent as of June 13.
This was due to the infusion of NFA rice in the Bigasan ni Gloria sa Palengke outlets, Tindahan Natin outlets, Bigasan sa Parokya outlets, local government unit retail store outlets and the fielding of NFA rolling stores, Adorable said.
"Logistical assistance such as trucks, fuel and manpower provided by the LGUs has made possible NFA's rolling stores to cater with cheap NFA rice remote barangays in the province," said Evangeline P. Costales, NFA local information officer.
The declining rice prices were also attributed to the dropping buying price of palay in the area.
Buying prices of palay have dropped to P15/kg as of June 17 in the provinces of South Cotabato, Sultan Kudarat and some parts of North Cotabato due to fresh harvests, Costales said.
Previously, buying price of palay ranges from P17 to P20/kg, the regional Bureau of Agricultural Statistics has reported.
