By Clarist Zablan
(October 19, 2023) – A farmers’ group on Thursday suggested reimposing the price cap on well-milled rice next month, citing fears that traders will “artificially increase” the price of rice in the market due to higher palay prices.
Samahang Industriya ng Agrikultura (SINAG) said farmers had expressed fears the country could see another spike in rice prices in the coming weeks, as some millers and traders offered to buy palay or unhusked rice at higher prices at P21 to P23.50 per kilo for fresh harvest and P26 to P29 for dry palay.
In July, the average farmgate prices of dry palay stood at P19.38 per kilogram, based on data from the Philippine Statistics Authority.
“While this is positive for our farmers, we are all worried about a possible repeat of the rice price spikes last August where traders tried to justify the increase in rice prices because of the high farmgate price(s) of palay,” SINAG said in a statement.
SINAG said some traders wanted “to create another artificial rice price crisis.”
“So we are asking again our President to intervene and address this potential problem,” the group said.
Based on the department’s latest data, the commercial price of rice ranged from P41 per kilogram for local regular milled rice to P62 for local special rice. The price of both local and imported well-milled rice stood between P45 to P48.
On October 4, Marcos Jr., who is also the agricultural secretary, ordered to lift the rice price ceiling one month after imposing it to control spikes in prices that he believed to have been caused by agricultural smuggling.
The price cap, set at P41 for regular-milled rice and P45 for well-milled rice, drew mixed reactions from retailers and economists who voiced concerns of its negative impacts on the agricultural sector.
In lifting the rice price ceiling, Marcos assured the public that the government has been taking other steps to expand support for local farmers and improve the agriculture sector.
“We are taking other measures para tulungan ang ating farmers in terms of their equipment, processing,” Marcos told reporters on October 4. “We will continue the assistance that we have been giving to farmers and also to the most underprivileged families.”
(MM)
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