Q2 Palay Output Boosts Stocks Ahead of El Niño, DA Says

MANILA, Philippines — The country’s higher palay (unhusked rice) production in the second quarter could provide additional rice stocks in preparation for the impact of El Niño on local farm production, according to the Department of Agriculture (DA). Agriculture Secretary Francisco Tiu Laurel Jr. said the DA has conducted early preparation to safeguard food supplies and farmer incomes in response to the upcoming drought. Tiu Laurel added that the four-month suspension on rice imports, which ran from September to December last year, supported the improvement in market conditions and gave farmers a better opportunity to receive higher earnings. The country’s palay production rose by 5.7 percent to 4.63 million metric tons (MT) in the April to June period, according to data from the Philippine Statistics Authority (PSA). This was the highest second quarter output since 1987, when the PSA started recording the production data. The record palay output was mainly driven by a 6.5-percent expansion in harvested area to 1.04 million hectares. The DA said the expansion of palay land was due to favorable growing conditions, continued government support and improved market conditions, which encouraged farmers to plant more. Favorable production in the second quarter had offset the 6.3 percent decline of harvest in the previous quarter, leading to a total rice output amounting to 9.02 million MT in the first half. The DA said while the higher output provides the government more room to rebuild its rice inventories through the National Food Authority, conditions may become more challenging in the coming months. “Food security means being proactive. We must keep farmers planting despite higher costs and the threat of El Niño,” Tiu Laurel said. The agency added that it is closely monitoring other planting areas amid PSA projections that palay output would drop by 13.3 percent to 3.25 million MT. “While the estimate reflects crops already established at the time of assessment, the DA continues to closely monitor succeeding planting areas through field validation and remote sensing as weather conditions evolve,” the DA said. It added that initial field reports indicate that there was delayed planting in some areas due to the onset of rains and a slowdown in irrigation delivery. The agency noted that it is looking to balance support for domestic farm production while also allowing timely rice imports to strengthen local supply. Rice import arrivals have reached 3.5 million metric tons.