Palay prices up in January – PSA

THE average farmgate prices of palay (unmilled rice) per kilogram increased by 3.4 percent to P17.73 in January, according to the latest data from the Philippine Statistics Authority.

This was slightly higher than the P17.68 per kilogram in December 2022 and P17.15 per kilogram in January 2022.

Five regions observed annual increases in the average farmgate prices of palay during the first month of the year.

Northern Mindanao noted a 3.1-percent growth rate, an increase after it announced an annual decrease of -0.3 percent in December 2022.

Among the regions producing palay, Caraga Region recorded the highest annual growth in prices at 8.9 percent during January 2023.

Meanwhile, farmgate price of palay in Central Visayas plummeted by -4.1 percent during the same period.

Michael Ricafort, chief economist at Rizal Commercial Banking Corp., said that the slow increase for the month of

January is partly due to better weather conditions, especially in Northern Luzon, as the summer season approaches.

He also added that the one-year extension of the reduced tariffs on imported rice as part of the nonmonetary measures was another factor that affected the slower price change.

“However, some pickup in world rice prices recently would be an offsetting risk factor that could lead to higher palay and milled rice prices,” said Ricafort.