DA expects stable food prices in Q2 despite El Nino

MANILA, March 18 — The Department of Agriculture (DA) foresees stable prices for prime commodities such as rice, chicken and fish in the second quarter of the year as these goods are expected to be in ample supply despite the latest El Niño onslaught.

DA OIC-Undersecretary Salvador Salacup on Thursday said that prices of sugar and chicken are also expected to soften soon owing to the stabilizing supply of these commodities in the market.

He said the DA expects the supply of palay to reach 3.463 million metric tons (MT) in the April-June period, which already factors in the impact of the ongoing dry spell, that is projected by the weather bureau to last till mid-2010.

"With demand expected at 3.303 million MT in the second quarter, the 3.463 million MT projection is more than enough to cover our national requirements for the period," said Salacup.

Chicken prices are expected to go down following requests from producers to lower poultry reference prices so that they reflect farmgate costs.

After a stakeholders consultation last March 16, a new suggested retail price (SRP) of P125 per kilo for fully dressed chicken has been issued.

On the other hand, Salacup said, the SRP for sugar will be reduced to P50 per kilo from last weeks P52 a kilo level because of stabilizing supply.

"Retailers will be given time to sell their higher-priced stocks," he added.

Despite the El Nino, the DA also expects surpluses of 5,135 MT of chicken, 24,674 MT of tilapia production, and 47,139 MT of milkfish in the second quarter of the year.

Salacup said that with these surpluses, the DA expects prices of these basic goods to remain stable over the next quarter, with regular-milled rice now selling for P30 per kilo in Metro Manila, and tilapia and milkfish at P80 per kilo and P110 per kilo, respectively. (PNA)

DCT/LGI