PHL rice retail prices still high in Aug–FAO By Ada Pelonia
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HE Philippines’s retail rice prices remained elevated in August due to El Niño and high world prices, according to the Food and Agriculture Organization of the United Nations (FAO). This, despite the international agency recording a slight decline in retail prices of regular and wellmilled rice in the reference period. “In the Phi lippines, retai l prices of regular and well-milled rice declined slightly in August, reflecting improved precipitation amounts that boosted production prospects for the 2024 main paddy crop, which is expected be harvested from September,” the
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FAO said in its latest report. “However, prices remain at about 16 percent higher year-onyear, following sharp increases registered between February 2023 and April 2024, in the context of increases in international prices and concerns over the effect of dry weather conditions on the 2023/24 paddy crop.” The FAO said wholesale rice prices increased for the second consecutive month in August in Vietnam. “[This is] mostly due to strong international demand and an increase in gasoline prices which increased transport costs,” it said. The FAO also noted that wholesale rice prices in Thailand declined in the
reference period, “reflecting aboveaverage supplies from the 2023/24 harvest and favorable prospects for the 2024 main season, which will be harvested from October onwards.” According to the international agency, India also recorded a reduction in its national average retail price of rice in August, though prices were slightly higher year-on-year. For Myanmar, the FAO said ret a i l pr ices of t he “w ide ly consumed” Emata rice rose sharply in the reference period and reached near-record levels. It added that this reflected tightening seasonal availability ahead of the 2024 main harvest that is expected to start in October.
“High production and transport costs exacerbated price increases [in Myanmar],” the FAO said. Meanwhile, the international agency noted that export rice prices increased in Vietnam in the reference period. “Prices increased in Vietnam, as strong sales to Indonesia and the Philippines offset downward pressure e xer ted by har vest progress,” it said. “On the other hand, lackluster demand kept quotations of Thai 100 percent B white rice prices close to their July level, despite an appreciation of the baht against the United States dollar.”
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Tuesday, September 17, 2024 Vol. 19 No. 336
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REMITTANCES BREACH $3B, HIGHEST SINCE DEC By Cai U. Ordinario
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@caiordinario
EMITTANCES sent home by Filipinos overseas breached $3 billion for the first time this year, according to the Bangko Sentral ng Pilipinas (BSP). Total cash remittances sent by Filipinos abroad reached $3.08 billion in July 2024, the highest since the $3.28 billion posted in December 2023. OFW cash remittances grew 3.1 percent from the $2.992 billion posted in July 2023 and was 7.04 percent higher than the $2.882 billion recorded in June 2024. “The continued growth is still a good signal/bright spot for the overall economy as an important growth driver, especially in terms of consumer spending, which accounts for about 70 percent of the Philippine economy,” Rizal Commercial Banking Corporation (RCBC) Chief Economist Michael L. Ricafort said. On a year-to-date basis, BSP See “Remittance,” A2
CASH LANDING Overseas Filipino workers (OFWs) at Naia Terminal 3 are seen either departing for their work destinations
or returning home for long-awaited vacations with their families. In July 2024, cash remittances from OFWs sent through banks reached $3.08 billion, marking a 3.1 percent increase from the $2.9 billion recorded in the same month last year. The Bangko Sentral ng Pilipinas credits this surge to higher remittances from both land-based and sea-based workers, highlighting the continued vital role of OFWs in the Philippine economy. NONIE REYES
BONJOUR PARIS! WILL PINOYS BITE DIRECT SERVICE FROM MNL? By Ma. Stella F. Arnaldo @akosistellaBM Special to the BusinessMirror
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HE Department of To u r i s m ( D O T ) i s l o o k i n g fo r w a rd t o more tourist arrivals from Europe with the resumption of nonstop flights between Paris and Manila in December. In a news statement, Tourism Secretar y Christina Garcia Frasco said, “Through this air route, we are eager to welcome more visitors from France and the European Union, who will discover and love the unique
charm of our islands, the warmth of Filipino hospitality, and the richness of our culture and heritage. We are optimistic that this will pave the way for further expansion of direct flights to other key European destinations in the near future.” But speaking on background, a veteran tourism leader told the BusinessMirror, the success of the new route will all boil down to the cost of the airfare. “From experience, most of our clients from Europe take Middle Eastern carriers, or Asian carriers. It’s See “Paris,” A2
Port congestion holding up rice shipments–DA chief
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ORT congestion is holding up rice shipments, and because of such delay, local consumers may have to wait longer for cheaper rice prices, agriculture officials indicated on Monday. Rice arrivals in August reached 361,724.20 metric tons (MT), based on figures from the Bureau of Plant Industry (BPI). Imports started to pick up after shipments in July slowed to 167,403.84 MT following the implementation of Executive Order (EO) 62, which lowered the tariffs to 15 percent and took effect on July 7. Agriculture Secretary Francisco Tiu Laurel Jr. explained that the country’s monthly consumption of imported rice was 320,000 metric tons (MT). With average shipments
from the first semester at nearly 400,000 MT, he noted that there would be excess of about 80,000 MT. “ We st i l l h ave old stoc k s [bought] at [higher] price to sell. I would expect that price should go down by mid-October based on the shipments that have arrived,” Laurel told reporters at a press conference orga ni zed by t he Makati Business Club on Monday. Ho w e v e r, t he a g r i c u lt u re chief noted that only 60,000 MT of imported rice have arrived as of writing. “That’s a problem. There’s no shortage, but it might drive prices of rice not to go down that soon,” he added, partly in Filipino. See “Port,” A2
PESO EXCHANGE RATES n US 56.0150 n JAPAN 0.3980 n UK 73.5253 n HK 7.1831 n CHINA 7.8703 n SINGAPORE 43.1615 n AUSTRALIA 37.5469 n EU 62.0534 n KOREA 0.0422 n SAUDI ARABIA 14.9250 Source: BSP (September 16, 2024)