Price and Market Watch: Rice Sufficiency

Category » Price and Market Watch • Reference period » 2013 • Posted on 03:01:45 PM, Saturday, February 8th, 2014

Rice Demand

Note: Rice demand is a function of population projection (similar values every quarter) that’s why it barely changes every quarter.

Demand of rice was high among the key urban centers in Luzon and Visayas. Demand was low in Northern Luzon and some parts of eastern Mindanao.

Rice Supply

In 2012, rice supply for the first quarter came mostly from Cagayan Valley, Central Luzon and certain parts of Western Visayas and Central Mindanao. In the second quarter, supply still came from Cagayan Valley and some parts of Central Luzon. In the third quarter, supply came mostly from Western Visayas and certain parts of Cagayan Valley. In the fourth quarter, supply started to originate from some parts of Central Luzon.

Rice supply pattern in 2013 was entirely different from that of 2012. Production was highest in Cagayan Valley in the first quarter, and to some extent, in the fourth quarter. Supply from Central Luzon was regular every quarter, with bulk during the fourth quarter. Rice production in Western Visayas was high in the third quarter and least in the second quarter. Central Mindanao produced mostly in the third quarter.

Rice Adequacy Ratio

In the fourth quarter of 2012, supply of rice was balanced with demand. In the second quarter, when there is less rainfall throughout the country, rice demand exceeded its supply.

Rice adequacy pattern in 2013 is comparable to those observed in 2012.

Net Rice Benefits

NOTE: Benefit is achieved when retail and farmgate prices are near each other, i.e., lower values for the Net Rice Benefits.

In 2012, rice benefit declined in the fourth quarter. Farmers received lower farmgate prices because of high supply. Consumers paid higher retail prices due to high demand. Farmgate and retail prices were nearest each other during the third quarter.

In 2013, retail prices were much higher than farmgate prices, especially in the first and second quarters. In the fourth quarter, when the majority of the Visayas Region was affected by Typhoon Yolanda, difference in retail and farmgate prices were wide in areas with production (Western Visayas) and narrow in areas with practically no production (Eastern Visayas).

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Maps the price and market situation for selected commodities in the country

ERMINA V. TEPORA
Division Chief
Agricultural Marketing Statistics Analysis Division (AMSAD) - BAS
evtepora@bas.gov.ph; amsad@bas.gov.ph; amsadodc@gmail.com