Rice Price might reach P40 per kilo in JULY

The Rice Watch and Action Network on Wednesday warned that unless the government acts now pries of commercial rice could reach P40 per kilo in the next few months, as the Philippines faces serious rice supply crisis due to dwindling domestic production.

The Department of Agriculture announced Wednesday that the Philippines signed a deal to import rice from Vietnam to boost local reserves at a time of rising prices and shrinking global stocks.

The Agriculture Department says rising demand in the Middle East and Africa has increased the prices in Vietnam and Thailand - the world's top exporters - to up to $500 per metric ton, a 25 percent jump in just the last month.

The government plans to increase local production by planting an additional 600,000 hectares (1.5 million acres) of rice during the rainy season in the country's 10 poorest provinces and another 500,000 hectares (1.2 million acres) in other provinces. -GMANews.tv

Rice Crisis

The country's estimated 90 million people consume 33,000 tonnes per day and the government is trying to contain a surge in price of the staple by securing guaranteed supplies.

NFA has only a limited impact. In local markets, traders often tell customers they cure out of NFA rice, which is kept at 18.5 pesos a kilogram, forcing them to pay nearly 30 pesos per kilogram for other varieties.