Food prices to remain stable despite drought

Prices of prime commodities such as rice, chicken and fish would likely remain stable in the second quarter, with ample supply despite an El Niño-induced drought, the Agriculture department said on Thursday. Agriculture Secretary Bernie Fondevilla said sugar and chicken prices are also expected to soften soon due to stable supply. The agency expects palay (unhusked rice) supply to reach 3.46 million metric tons (MT) in the April to June period, which already factors in the impact of the ongoing dry spell that is projected to last until midyear. With demand expected at 3.303 million MT in the second quarter, the 3.46 million MT projection is more than enough to cover the country’s requirements for the period, the department said. Meanwhile, chicken prices are expected to go down following requests from producers to lower poultry reference prices to reflect farm gate costs. After a stakeholders’ meeting last Tuesday, a new suggested retail price of P125 per kilo for fully dressed chicken was issued. Meanwhile, the suggested retail price for sugar will be cut to P50 per kilo from P52 last week due to stabilizing supply. Retailers will be given time to sell their higher-priced stocks, the agency said. Despite the El Niño, the government expects a surplus of 5,135 MT of chicken, 24,674 MT of tilapia and 47,139 MT of milkfish in the second quarter. As a result, prices of these basic goods would likely remain stable over the next quarter, with regular milled rice now selling for P30 per kilo in Metro Manila and tilapia and milkfish for P80 per kilo and P110 per kilo, respectively, the government said. — NPA, GMANews.TV