The Department of Agriculture (DA) foresees stable prices for prime commodities like rice, chicken and fish until midyear.

This optimistic prediction was made by OIC Undersecretary Salvador Salacup, who said the impact of El Niño would not cause any shortage since there is ample supply of basic goods.

Salacup added in his report to Agriculture Secretary Bernie Fondevilla that prices of sugar and chicken are also expected to soften due to stable supply.

He revealed as well that the supply of palay would reach 3.463 million metric tons (MT) in the April-June period, and this figure already factors in the impact of the dry spell, which may last until June.

“With demand expected at 3.303 million MT (MMJT) in the second quarter, the 3.463 MMT projection is more than enough to cover our national requirements for the period,” Salacup argued.

Chicken prices are expected to go down following requests from producers to lower poultry reference prices so that they reflect farmgate costs.

After a stakeholders’ consultation last March 16, 2010, a new suggested retail price (SRP) of P125 per kilo for fully dressed chicken has been issued.

On the other hand, the SRP for sugar will be reduced to P50 per kilo from last week’s P52 per kilo level because of stabilizing supply.

“Retailers will be given time to sell their higher-priced stocks,” Salacup added.

Despite El Niño, the DA also expects surpluses of 5,135 MT of chicken, 24,674 MT of tilapia and 47,139 MT of milkfish in the second quarter.

He said that with these surpluses, DA expects prices of these basic goods to remain stable over the next quarter, with regular-milled rice now selling for P30 per kilo in Metro Manila and tilapia and milkfish at P80 per kilo and P110 per kilo, respectively.