Rice costs to stay excessive till midyear — DA

By Luisa Maria Jacinta C. Jocson and Adrian H. Halili, Reporters

THE DEPARTMENT of Agriculture (DA) stated on Wednesday that rice costs are anticipated to stay excessive till midyear, because the agriculture sector reels from the influence of the El Niño climate occasion.

On the similar time, analysts warned elevated costs of the staple might add to inflationary pressures.

“Hopefully, costs go down throughout the second half of the 12 months. However as of the second, since there are nonetheless the lingering effects of El Niño, I don’t assume it should go down,” Agriculture Secretary Francisco P. Tiu Laurel, Jr. instructed reporters.

Agricultural injury brought on by the El Niño has risen to P2.63 billion, affecting 54,203 farmers and 53,879 hectares of farmland, in response to the DA.

“We anticipate that (agricultural injury) would enhance. We’re on the top of El Niño now. Hopefully, by the top of Might, it should lower,” Mr. Tiu Laurel stated.

Rice was probably the most affected crop with 72,733 metric tons (MT) of harm, equal to P1.7 billion or about 65% of whole agricultural losses.

“Rice is closely water and rainfall dependent, so if the rice areas are affected (by El Niño) then it’s a main difficulty. Additionally, if the drought hits at levels within the crop’s life when it most wants water then that worsens the difficulty,” Financial Board member V. Bruce J. Tolentino stated in a Viber message.

Federation of Free Farmers Nationwide Supervisor Raul Q. Montemayor stated that agricultural injury from the El Niño might rise additional. 

“Some crops which are nonetheless on the bottom have already been affected by the dearth of water and this can end in decrease output and yields when these crops are harvested (assuming they survive),” he stated in a Viber message.

The El Niño throughout the tropical Pacific Ocean is exhibiting indicators of weakening and is predicted to persist till Might, in response to the Philippine Atmospheric, Geophysical and Astronomical Companies Administration (PAGASA).

“Based mostly on stories from PAGASA, the El Niño decay began in March. We predict that by Might, it will likely be gone. We are able to anticipate further agricultural injury however not by lots,” DA spokesperson Arnel V. de Mesa stated in combined English and Filipino in a cellphone name on Wednesday.

Newest PAGASA information confirmed that 24 provinces from Luzon and one in Visayas are experiencing meteorological drought; 16 provinces are below dry spells; and 10 reported dry situations.

Provinces which are in a drought embrace Cagayan, Nueva Ecija, Isabela, Pangasinan, and Negros Occidental, that are among the many prime rice-producing provinces within the nation. 

“Farmers will have the ability to replant solely when the rains come, and the lingering effects of El Niño might delay the onset of rains by a couple of month (from its common onset in Might),” Mr. Montemayor stated.

“Dam ranges may additionally be too low to maintain irrigation to crops even when El Niño subsides. Decrease output means much less provide and will result in greater meals costs,” he added.

SCARCE WATER SUPPLY
Former Agriculture Undersecretary Fermin D. Adriano additionally famous the effect of scarce water provide on agriculture.

“Due to insufficient provide of water, native provide is not going to be sufficient and therefore meals costs would possibly enhance,” he stated in a Viber message.

Rice inflation surged to 23.7% in February, its quickest tempo because the 24.6% seen in February 2009.

Mr. Tolentino stated it’s difficult to forecast the total influence of the dry climate occasion on agriculture and meals costs.

“The influence is determined by precisely the place the drought hits -—whether or not or not the areas affected are closely agricultural or not, and at what rising stage the crop is,” he added.

Nonetheless, he famous that rice costs usually have been elevated for a while now attributable to rising fertilizer costs, provide chain disruptions and India’s ban on exports.

As of April 2, the common retail value of native well-milled rice ranged from P48 to P55 per kilogram from P39 to P46 per kilogram a 12 months in the past. Common milled rice additionally rose to P50 per kilogram from the P34 to P40 vary a 12 months earlier.

The Philippine Statistics Authority information confirmed the nationwide common value for properly milled rice was P56.95 per kilogram as of mid-March.

The best retail value throughout the interval was reported within the Central Visayas, with the common at P59.27 per kilogram.

The Ilocos Area, alternatively, reported the bottom value for properly milled rice at P52.89 per kilogram.

MORE IMPORTS?
In the meantime, Mr. Tiu Laurel stated shares might stay sufficient for the nation’s rice necessities, because of the ongoing harvest season and continued buy of palay or unmilled rice by the Nationwide Meals Authority (NFA).

“Properly, the NFA has already purchased a specific amount… it’s harvest season, as everyone knows, (which) will proceed till Might. So, there’s sufficient inventory,” he added.

Mr. Tiu Laurel stated that rice imports have additionally been repeatedly arriving to bolster native provide.

Rice imports have reached 995,841 MT as of March 21, in response to the Bureau of Plant Trade.

To assist ease value pressures within the brief time period, the federal government ought to contemplate permitting extra imports.

“Within the medium time period, stress can ease if commerce insurance policies are stabilized, and tariff reductions made everlasting.  Long run, the sustainable answer is improved home productiveness via analysis and improvement,” Mr. Tolentino stated.

The US Division of Agriculture initiatives Philippine rice imports to succeed in 4 million MT this 12 months.