Q2 PALAY PRODUCTION SEEN DOWN 1.8%

The country’s palay production in the second quarter was seen to have contracted by 1.8 percent to 4.05 million metric tons (MT) from 4.15 million MT last year, data from the Philippine Statistics Authority (PSA) showed.

Areas planted to rice also declined to 932,000 hectares (ha) from last year’s 947,000 ha.

Nonetheless, the PSA expects additional palay production in Isabela, Nueva Ecija, Laguna, Quezon, Mindoro Oriental and Surigao Sur to be brought about by good pest and disease control and sufficient water supply during the cropping period.

Based on data from the National Food Authority (NFA), total production this year was seen to reach only 12.26 million metric tons while consumption for the year may reach 14.1 million MT. The country may have to resort to increased importation to cover the shortfall of 1.8 million MT.

Last week, the NFA said it was proposing to its council to import an additional 500,000 MT of rice to boost its buffer stock and distribution in the market. This would bring the grains agency’s rice imports so far to 1 million MT.

In an earlier interview, Agriculture Secretary Emmanuel Piñol said the Department of Agriculture was expecting palay output to reach a record-high this year as more farmers were seen planting the staple due to higher buying prices for palay.

In 2017, the country’s rice production reached 19.26 million MT, which Piñol said “was the highest in the country’s history.”