Palay prices rise 30.2% in May

By Rose de la Cruz

Palay farmers definitely had it good last May when farmgate prices (or some call it producers’ prices) rose 30.2 percent to P24.81 per kilogram, based on data from the Philippine Statistics Authority.

They deserve every bit of that increase because they were the ones that tilled and took care of the crop during the severe heat marked by a drought in wide swaths of the country caused by the El Nino. Must we not reward their sacrifices?

The PSA reported that all regions recorded year-on-year growth in farmgate prices during the month (again, let’s give it to them for the hard work).

The highest prices in May were posted in the Western Visayas, where palay prices rose 39.7 percent to P27.76 per kilo but the lowest was posted in Eastern Visayas at P19.56 per kg., yet up 11.7 percent year on year.

The National Food Authority Council last April increased its buying price for palay to be able to compete with private traders that have virtually cornered the produce in the country. (Most traders have been extending production and subsistence loans to farmers through the years because the producers always had a tough time borrowing from formal banking institutions).

The buying price for dry and clean palay was raised to P23 to P30 per kg and for fresh palay to P17 to P23 per kg, depending on location and the grain grade.

On a month-on-month basis, the PSA said that the average farmgate price rose 1 percent from April.

The PSA said nine regions posted higher farmgate prices month on month, while seven regions posted declines.

Northern Mindanao and Central Visayas reported the highest month-on-month rises to 7.9 percent. The average farmgate prices in those regions were P26.66 and P27.28 per kilo, respectively.

Ilocos Region saw a 2.9 percent decline month on month in May.