Palay production declines 3% in Q1

Production of the seasonally adjusted palay (unhusked rice) declined 3.18 percent in the first quarter amid lesser area planted and harvested.

Based on the seasonally adjusted rice production and prices culled by the Philippine Statistics Authority, palay output decreased to 4.5 million metric tons, down by 7.36 percent year on year.

Experts attributed the lower production to the harvest delay.

The government is hopeful of a rebound for the second quarter despite the impact of the coronavirus pandemic as strategic interventions under the Rice Competitiveness Enhanced Fund (RCEF) are expected to bear fruit.

The Department of Agriculture has started the nationwide implementation of its Plant, Plant, Plant program to benefit farmers and consumers.

The gross value of palay output also decreased by 6.7 percent to P75.3 billion due to lower farm gate prices amid the influx of imported rice under a liberalized regime.

The seasonally adjusted farm gate price for palay was also down by 18 percent to P16.24 per kilogram. This is also 0.18 percent lower than the previous quarter’s P16.24.

The wholesale price of rice was P37.48 per kilo, 9.7 percent lower than the year ago.

Retail price also fell 11.85 percent to P41.30 per kilo.

The rice tariffication law has contributed to the decline in retail prices of rice. It also resulted in farmers’ losses as farm gate prices plummeted to record levels due to the deluge of cheap imports.