Stock piling stabilize rice and corn prices
The country’s rice and corn stocks were significantly higher in the beginning of February this year compared to a year ago as the National Food Authority and commercial traders hiked inventory to brace themselves from the lower harvest anticipated because of the El Nino phenomenon.
The higher inventory stabilized farmgate prices, with rice prices even showing slight declines from a year ago although wholesale prices of corn exhibited significant upticks.
The country’s rice stock totalled 2.94 million metric tons in the beginning of February, a quarter more than what was in stock in the same period last year, the Bureau of Agricultural Statistics reported.
Farmgate prices of palay dropped by three percent from a year ago to P17.50 per kilogram, with wholesale prices of well milled rice also declining by three percent to P37.88 per kilogram and wholesale prices of regular milled rice falling by five percent to P34.10 per kilo.
Retail prices of well milled rice dipped by almost three percent to P41.17 kilo and retail prices of regular milled rice decreased by almost five percent to P36.80 per kilo.
Rice stocks held by households, however, dipped by 4.3 percent to a million metric tons. Rice stocks of commercial traders grew by 22 percent to 942,400 metric tons while those held by the NFA jumped by 87.6 percent to 995,800 metric tons.
The country’s corn stocks, on the other hand, expanded by 23.3 percent to 311,700 metric tons, on the back of the stock piling by commercial traders. Corn stocks held by households dropped by 4.7 percent to 79,700 metric tons and stocks with the NFA fell by 69.6 percent to just 500 metric tons.
Farmgate prices of corn increased by almost four percent year on year to P12.69 per kilo but wholesale prices of corn jumped by over 14 percent to P15.58 per kilo and retail prices rose by over eight percent to P22.22 per kilo. (By: Eileen A. Mencias)