The Department of Agriculture (DA) is blaming the soaring price of rice in Mindanao on "speculation" by the farmers themselves.
Agriculture Undersecretary Jesus Emmanuel Paras Tuesday said that the farmers were holding on to their harvested palay (unhusked rice) in anticipation of higher farm-gate buying prices later this month because of the high prices of fuel and inputs like fertilizer.
The cost of commercial rice varieties in Mindanao has risen to up to P51 a kilo.
The National Food Authority (NFA) is buying palay at P17 per kilo, but private millers are offering farmers up to P24 per kilo of palay, according to Paras.
As a rule of thumb, the price of retailed milled rice is "times two" the palay price, he said.
