Department of Agriculture expects 5.5% hike in palay production

MANILA, Philippines -  The Department of Agriculture is projecting a 5.5 percent growth in palay (paddy rice) production this year and is sticking to its 17.4 million metric ton palay production target.

The DA’s Bureau of Agricultural Statistics (DA-BAS) projects that total palay production in January-June 2011 may reach 7.64 million MT, 15.4 percent above last year’s level of 6.62 million MT.

The increase, according to the DA-BAS, would hinge on the expansion in harvest area by 9.6 percent or by 174.3 thousand hectares from the 1.82 million hectares in the previous year.

Yield per hectare may improve from 3.64 MT to 3.83 MT.

The National Food Authority plans to gradually increase its palay procurement to 10 percent by 2013 from the current level of just five percent.

This was revealed by NFA Administrator Angelito Banayo last Friday on the sidelines of the two-day Agriculture and Fisheries Summit held Feb.10 to 11 in Antipolo City, Rizal.

According to Banayo, the NFA hopes to gradually increase its palay procurement from the current five percent to eight then to 10 percent by 2013, depending on the availability of funds.

According to Banayo, the NFA’s target palay procurement for this year is five percent of the 17.4 million metric ton palay production for 2011.

The palay support price of P17 per kilo, Banayo said, would be maintained, pointing out that the support price is quite high.

Banayo said that if he was in the private sector, he would offer a lower price to farmers for their palay.