DA slashes palay output target to 20.4 million tons

MANILA, Philippines —  The Department of Agriculture (DA) slashed its palay production target for the year to 20.4 million metric tons (MT) after taking into consideration the impact of El Niño on domestic farms.

The new palay production target is about two percent lower than DA’s earlier target, which was 20.8 million MT, according to Agriculture spokesman Arnel de Mesa.

De Mesa said the new palay production target is “more realistic,” considering the possible losses that rice farms may incur this year due to El Niño.

Nonetheless, De Mesa noted that it is still above the 20.06 million MT record palay harvest last year.

He said the country would have sufficient rice supply despite the reduction in output, thanks to imports that have already exceeded 1.5 million MT at the end of April.

The drivers for the higher palay output this year would be the anticipated expansion in area harvested as more farms are planted with hybrid and inbred seeds and higher mechanization level, De Mesa said.

He added that the actual impact of El Niño on rice production has been lower than what the DA initially expected.

Local palay output from January to March declined by two percent to 4.68 million MT from the 4.78 million MT recorded volume in the same period last year, according to the Philippine Statistics Authority.

El Niño has affected some 34,264 hectares of rice farms in the first quarter, resulting in production loss amounting to about 72,733 MT.

Meanwhile, National Irrigation Administration (NIA) administrator Eduardo Guillen on Wednesday said the government targets to sell a total of 100 million kilos of rice in Kadiwa centers at P29 per kilo in August as the retail price of the staple in the markets remains high.

In a radio interview, Guillen said the program is part of the contract farming entered into by NIA with farmers’ associations covering 40,000 hectares of palay plantations.

Guillen added that the selling of affordable rice is part of the government’s intervention amid the upward trend in the retail prices of the grains.

“Under the memorandum of agreement, they (farmers) will return to us at least five tons (of palay). Once they give the five tons, we will give them another P50,000 inputs and cash, or a total of P100,00,” Guillen said.

According to Guillen, NIA encourages farmers to form associations to enjoy the benefits of the program.

Watchdog group Bantay Bigas spokesperson Cathy Estavillo said the flooding of imported rice will continue with the amendments of the Rice Tariffication Law or Republic Act 11203.

In an interview with The STAR, Estavillo said that while Bantay Bigas supports the return of the power of the NFA, the proponents pushing for the amendments of the RTL failed to mention the sources of funding for the NFA subsidized rice.

Estavillo said the budget of the NFA will come from the Rice Competitiveness Enhancement Fund. – Bella Cariaso