Extended lean season for rice seen due to delayed plantings

MANILA, Philippines - The prevailing lean season for palay (unhushed rice) production is expected to to extend until October due to planting delays for the third quarter harvest, according to the Department of Agriculture (DA).

Because of the delayed onset of the rainy season, farmers cultivating some 77,000 hectares of rain-fed areas were suppose to resume planting in July instead of June, said Edilberto de Luna, DA assistant secretary for field operations and National Rice Program coordinator. Thus, former would only be able to harvest in October instead of September.

“(Production) in irrigated areas are alright. Only rain-fed areas are affected,” he told reporters late Tuesday.

De Luna said that to the delayed of planting schedule, third quarter palay production is expected to fall to three million metric tons (MT) from 3.3 million MT produced in the same period last year.

For this year, the country targets to produce 19.07 million MT of palay, up from the production level of 18. 44 million MT produced in 2013.

De Luna said the government is increasing support in key production areas to achieve this. These areas include Regions 1, 2, 3, 4A and 5.

Farmgate prices of palay are expected to range between P20 to P21 during the prevailing lean season.

Data from the Philippine Statistics Authority (PSA) showed that in the third week of August, the farmgate price of palay averaged at P21.30 per kilogram, down by 0.42 percent week-on-week. Compared to prices in the same period last year, palay prices were up 17.23 percent.

De Luna said farmgate prices fell week-on-week mainly due to slower buying by traders who have not yet disposed of the existing volume in their warehouses. Before the onset of the lean season, traders procured palay at higher prices, averaging at P24 per kilogram.

“At P21 per kilogram, this is still a good price,” said De Luna.

With a prolonged lean season, wholesale and retail prices of rice are expected to remain high as traders are likely to pass on their stock at high prices.

The importation of 500,000 MT of government buffer stock by the National Food Authority (NFA) is also facing delay after the government rejected bids by suppliers during an open bidding held last Aug. 27.