PSA releases nationwide 2022 Survey on Costs and Returns results

The Philippine Statistics Authority (PSA) presented on 25 September 2023 in Centris Building, Quezon City and via Google Meet the results of a nationwide survey on rice costs and returns conducted for the period March 2022 to September 2023. 

Titled “2022 Survey on Costs and Returns (SCR) Final Results”, the event was attended by officials of PSA and DA, who both regarded the survey results as crucial to the DA’s policymaking and program implementation, particularly on the rice industry. 

In a nutshell, PSA presented the survey results in terms of the average cost of producing palay in the Philippines, by region, and per hectare basis. Other data presented are the net profit-cost ratio averaged, the average gross returns in palay production, and returns after deducting all production costs. 

PSA revealed that the average cost of producing palay in the country was PhP 14.98/kg in 2022. By region, the highest production cost was recorded in Central Visayas at PhP 22.43/kg. The lowest production cost was noted in Central Luzon at PhP 12.85/kg. On a per hectare basis, the average cost of palay production in 2022 at the national level was PhP 54,373. The highest average cost was recorded in Cagayan Valley at PhP 69,537, while the lowest was observed in Eastern Visayas at PhP 40,033. 

Net profit-cost ratio averaged 0.20, PSA further cited. This means farmers earned an average of PhP 0.20 for every peso invested in palay farming. Among the regions, the highest net profit-cost ratio was recorded in Northern Mindanao at 0.44, followed by Central Luzon and SOCCSKSARGEN at 0.41 and 0.31, respectively. The average gross returns in palay production amounted to PhP 65,209/ha. Central Luzon had the biggest gross returns at PhP 86,158/ha. The lowest gross returns amounting to PhP 43,102/ha was registered in Central Visayas. 

PSA noted that returns, after deducting all production costs, amounted to PhP 10,836/ha. Central Luzon recorded the highest average net returns at PhP 25,002/ha. Followed by Northern Mindanao with an average net return of PhP 24,627/ha and Cagayan Valley with PhP 15,496/ha. 

The PSA survey was made possible by the funding support of the DA-Bureau of Agricultural Research. It contributes to one of the bureau's research for development agenda, particularly addressing inadequate and outdated rice statistics toward an up-to-date rice statistics for the rice database to serve as a basis for sound policy-making. (### Lea B. Calmada)