“. This was the headline of the press release of the House of Representatives issued on September 7, and I stared at it in complete disbelief. But sure enough, the press release quoted Speaker Martin Romualdez as saying that “the huge reduction” [in the prices of rice in the global market]He further crowed, “It is proven that the EO 39 of President Bongbong R. Marcos Jr. set commendable results not only in our country, .
The basis of Romualdez’ “huge reduction” in world prices, per the release, was this: “According to US-based Market Insider, the price of rice in the world market decreased from $384 per metric ton last July to $332.4 per metric ton this month.” Reader, the United Nations Food and Agriculture Organization – please google – “provides monthly rice export prices from major origins and is released monthly.
You see, Reader, there is no such thing as “the price of rice in the world market”, as quoted above. There are only the overall price indices, and the export prices of major exporting countries. Plus, the latest FAO Rice Price Update came out on September 8, one day after the Romualdez press release. It shows that the August rice price indices were compared to those in July, and even higher compared to August 2022: “The All Rice Price Index by 9.8% in August 2023 to reach 142.4 points.
So, based on the evidence presented above, there has been no huge reduction in the internationally traded prices of rice. If anything, there has been a huge increase. So, what was “US-based Market Insider” talking about?I could not read for myself the Market Insider report alluded to in the Romualdez press release, but according to an analyst who does not wish to be named, the price decrease “from $384 per MT last July to $332.
And what are rough rice futures? They are tradable, standardized contracts to receive or deliver a specified quantity of rough rice on a future date, at a pre-agreed price.