Palay production cost falls to three-year low

LOWER FERTILIZER PRICES, HIGHER YIELD

- By JASPER EMMANUEL ARCALAS

Lower fertilizer prices and higher yields allowed palay farmers last year to cut their production costs to a three-year low, government officials and industry players said.

The Philippine Statistics Authority (PSA) earlier reported that the average cost of producing a kilo of palay or unmilled rice last year fell by 10 percent year-on-year to P13.38 from P14.98 in 2022.

Agriculture Undersecretary for rice industry development Christopher Morales attributed the decline to higher yields posted by farmers nationwide as well as a drop in fertilizer prices, a critical input in palay production.

Morales noted that urea prices last year dropped to about P1,800 per 50-kilogram bag compared to P2,400 in 2022.