PRODUCTION

The seasonally adjusted palay production for April-June 2016 was 4.32 million metric tons, lower by 0.60 percent from the 4.35 million metric tons output in the first quarter of 2016 (Table 1).

The decline was attributed mainly to contraction in harvest area and decreased yield due to the adverse effects of dry spell across the country. A large part of palay rainfed areas in the province of Bohol in Central Visayas was totally damaged at vegetative and early reproductive stages of the crop due to dry spell. Moreover, the dry spell/drought in Cagayan Valley, Bicol, SOCCSKSARGEN and Caraga regions caused low yield because of insufficient water supply.

Figure 1. Quarterly Palay Production, Philippines, 2010-2016

Year on year, this quarter’s performance when deseasonalized was down by 6.02 percent or 277 thousand metric tons (Table 1).

Figure 2. Quarterly Farmgate Prices of Palay, Philippines, 2010-2016

PRICES

The seasonally adjusted farmgate price of palay for the second quarter of 2016 was up by 0.11 percent from its first quarter 2016 level (Table 1).

However, the wholesale and retail prices of rice dropped by 0.68 percent and 3.09 percent, respectively, from their levels last  quarter (Table 2).

Figure 3. Quarterly Wholesale Prices of Rice, Philippines, 2010-2016

This quarter’s deseasonalized farmgate price of palay was 1.57 percent above last year’s price (Table 1). On the other hand, retail and wholesale prices of rice decreased by 0.24 percent and 3.93 percent from their respective price quotations compared with the same period last year (Table 2).

Fkigure 4. Quarterly Retail Prices of Rice, Philippines, 2010-2016