Q1 rice production down 6%, palay prices up 0.95%
Palay production in the first quarter of the year dropped by 6.32 percent to 4.34 milion metric tons as the long dry spell resulted in a decrease in the area farmed, the Bureau of Agricultural Statistics said.
The drought damaged crops in some provinces while Central Luzon and Mimaropa were still reeling from the effects of typhoon Nona that hit in December 2015. Flooding affected harvest in Cagayan Valley as the Northeast monsoon rains also resulted in a reduction in the harvest area.
Farm gate prices of palay, meanwhile, inched up by 0.95 percent in the first quarter of the year from the fourth quarter of 2015, with retail prices of rice moving up by only 0.41 percent as wholesale prices dropped by 0.42 percent.
Palay farm gate prices averaged at P18.11 per kilo in the first quarter of the year, higher than the P17.94 reported in the fourth quarter of 2015. Retail prices of rice went up slightly to P41.40 per kilo in the first quarter, tempered by the decline in wholesale prices to P38.21 per kilo from P31.37 per kilo in the fourth quarter.