The average farm gate price of palay slid further to a new eight-year low in the fourth week of September while production of the staple had also posted a decline in the last three months, government data showed.

Based on latest reports from the Philippine Statistics Authority (PSA), the buying price of palay as of the fourth week of September fell further to P15.82 a kilogram, down 29.25 percent from the level in the same period last year.

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This is the second week that the average farm gate price breached the P15-a-kilo mark and the second time it hit an eight-year low.

Since the implementation of the rice tariffication law in March, palay prices have declined steadily with no signs of recovery anytime soon.

The government has yet to impose long-term solutions to address the declining prices of the staple as it continues to be edged out of the market by more affordable imported rice.

The lowest quotation for palay during the period was recorded in Bulacan where palay was sold at P10 a kilo. Meanwhile, the buying price of palay was highest in Surigao del Sur where it was sold at P20.40 a kilo.

In a separate report, the PSA said palay production in the country between July and September might have fallen by 4.7 percent to 3.05 million metric tons (MT) from previous year’s output of 3.20 million MT.

This may be due to the shrinking harvest area for palay at 733,000 hectares, down 11.1 percent from 825,000 ha last year. Some palay farmers were reported to have shifted to planting other crops due to the the decline in palay prices.

Nonetheless, yield per hectare was seen to have increased to 4.15 MT from 3.88 MT.

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