Manila - The price of rice in the Philippines is likely to spike up again this year amid the global economic crisis, a senior agriculture official said Tuesday. But agriculture Secretary Arthur Yap said the increase in the prices of rice - the country's staple food - will be minimal and the supply will remain steady.
"We believe that there will be increase in prices of rice because it is impossible for prices of basic commodities to decline amid the global crisis," he told a local radio station.
Yap expressed confidence that the spike in prices of rice will not reach panic level similar to what happened in the country in the middle of last year when panic buying ensued due to sudden increase in grain prices.
In December last year, President Gloria Macapagal Arroyo assured the people that the rice supply in the country will be stable due to expanded government procurement and increased inventory.
The International Rice Research Institute (IRRI) recently warned of volatility in rice prices in 2009 amid to tight credit and stunted production.
"Production uncertainty due to tight credit and declining rice prices, combined with strong demand growth, points to another rise in rice prices in the coming months," IRRI said.
