Continuing the first phase of the project on the development and maintenance of Producers’ Price Index (PPI) for Agriculture, the second phase focuses on the provision of adequate basis for the generation and maintenance of the series on Producers’ Price Index for Agriculture in the Philippines which was discontinued in 1987. This report further identifies the issues and problems related to the development and maintenance of PPI for agriculture and proposes corresponding plans of actions to BAS, and contains the results of the exercises done in determining regional market baskets and in developing a computer-based system for generating PPI for agriculture. Data needed for the PPI generation are volume of production and farmgate price which are obtained from different surveys/monitoring schemes conducted by BAS at different frequencies with varying coverage. Meanwhile, the selection and inclusion of commodities in the market basket are based on their respective value of production during the 1986 base year. Results pf the study further highlights the need for all items in the PPI basket to be included in the FPS coverage to suit the needs of the PPI system. Given that production and price data are available on a time lag, it is recommended to adjust the timetables of production data to enable the release of PPI within 2 months after the reference semester. Other issues to be addressed is the seasonality of production, and the degree of representativeness as in the case of one region representing a commodity in the integrated national market basket. Project results propose the modification of the existing systems for monitoring agricultural production and price to suit the needs of the PPI system, with aim on refocusing of priority commodities for monitoring coverage, and adjustments in the calendar of operations/submission of reports, and adjustments in the calendar of operations/submission of reports.

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