DA: Rice prices may reach P62/kg in September amid Middle East crisis

The Department of Agriculture (DA) said Wednesday that the price of rice may rise to as high as P62 per kilo by September due to higher fertilizer costs triggered by the ongoing Middle East conflict.

During the Senate’s Proactive Response and Oversight for Timely and Effective Crisis Strategy (PROTECT) committee hearing, Agriculture Secretary Francisco Tiu Laurel Jr. said fertilizer prices have already surged from around P1,650 to about P3,000.

“So, ang rice tataas sa (the price of rice will increase) next harvest season, which is around September,” Tiu Laurel said.

“If we do traditional practices na pareho pa rin… hindi tayo gagamit ng alternative or ‘yung farmers natin will not adopt the alternative fertilizers na sina-suggest ng DA, it can be, the computation as of yesterday is P62 per kilo,” he added.

(If our traditional practices remain the same, if we don’t use alternatives or farmers do not adopt the alternative fertilizers suggested by the DA, it can reach P62 per kilo, based on yesterday’s computation.)

Tiu Laurel noted that before the conflict, rice prices were around P42 per kilo, and have since risen to about P50 per kilo.

Asked by Senator Bam Aquino about interventions to curb rising prices, Tiu Laurel said the DA is studying a “rice blend” strategy, combining imported and locally produced rice.

“Napag-usapan kahapon, pinapagawa na namin to try is a 70-30 blend. So with that, kung mag-70-30 or eventually 60-40 or whatever it is, because we have to support our local rice, so we want 70-30 para tatakbo ‘yung local, tatakbo ‘yung imported, hand in hand, so bababa siguro ‘yun,” he said.

(We discussed this yesterday and we are working on a 70-30 blend. If we go 70-30 or eventually 60-40, because we need to support local rice, we want the 70-30 setup, so both local and imported rice will move together. Prices will likely go down.)

“Kasi ang landed cost ngayon ng imported rice is only P33 to P34 eh. By that time, we’re assuming na that landed cost will be P40. So ‘yung P40 versus P55 siguro… or wholesale na mga P52. ‘Pag binlend natin ‘yun, bababa ang average ng konti,” he added.

(The landed cost of imported rice is currently P33 to P34. By that time, we expect it to reach P40. So P40 versus P55, or wholesale at around P52—if we blend it, the average price will go down slightly.)

Tiu Laurel also said the DA is exploring a 50-50 “corn blend” combining rice and white corn.

“Kasi ang corn ngayon is P17 per kilo ang white corn or P18. Eh ang palay natin, ‘yung… recently nasa P25. Ang minimum na tingin namin para kumita ang farmers sa palay in September, dapat P22 pesos wet or P27 peso dry eh at this fertilizer prices,” he said.

(White corn is currently P17 to P18 per kilo, while palay is around P25. The minimum we believe farmers should earn in September should be P22 for wet palay or P27 for dry palay at current fertilizer prices.)

“Kung P27 ‘yun kunwari, tapos ang corn nasa P20, ‘pag 50-50 mo ‘yan, bababa,” he added.

(If palay is P27 and corn is P20, a 50-50 blend would bring the price down.)

Tiu Laurel said he has recently tried the corn blend and found it acceptable.

“Actually, you couldn’t really tell the difference eh,” he said.—MCG, GMA News