‘Weak peso to hike costs of imported farm goods’

The weakening Philippine peso has the potential to increase the cost of imported agricultural goods, including rice and fertilizer, according to the Department of Agriculture (DA). This could exacerbate food price pressures as El Niño continues to limit local farming output. DA Assistant Secretary and spokesperson Arnel De Mesa stated that consumers might observe slightly higher prices for imported farm products due to the declining value of the peso.

He explained that this impact would affect imports such as rice, requiring more pesos to purchase the same quantity. De Mesa predicted that imported rice prices may rise slightly by November, but assured that retail prices for rice would not exceed P60 per kilo. He attributed this potential rise to the strengthening of the US dollar and fluctuating freight costs due to petroleum price fluctuations.

As of October 28, the price for imported premium rice ranged from P48 to P64 per kilo, while imported well-milled rice was priced between P47 and P50 per kilo, based on DA price monitoring. The Philippines is anticipated to import over five million metric tons (MT) of rice this year because of the decline in local production due to the effects of El Niño.

Up to October 22, the country had imported a total of 4.37 million MT of rice, according to data from the Bureau of Plant Industry. De Mesa also warned that the declining peso could further affect fertilizer prices, which have recently surged due to high petroleum prices. The national average price for urea fertilizer could range from P2,206 to P2,670 per 50-kilo bag, according to the Fertilizer and Pesticide Authority. The peso fell to a historic low of 64.17 against the dollar on October 27.