Lower palay production seen this year

MANILA, Philippines - The production of unmilled rice (palay) is seen to fall by 0.6 percent year-on-year due to contraction of harvest area and planting delays, the Philippine Statistics Authority (PSA) reported yesterday.

In its latest palay and corn production outlook, PSA said palay production for 2015 could reach 18.86 million metric tons (MT), lower than the 18.97 million MT produced in 2014. This falls short of the production target this year of 20.08 million MT.

The PSA also sees the total harvest area for palay contracting to 4.68 million hectares from 4.74 million hectares in 2014. Yield per hectare, however, could improve to 4.03 MT per hectare from four MT per hectare.

PSA said unrealized plantings for the third quarter harvest could bring down second semester output due to the late onset of the rainy season and insufficient supply of irrigation.

For the first half, palay production fell by 0.7 percent to 8.32 million MT from 8.38 million MT in the same period last year. The harvest area fell by 1.7 percent during this period from 2.1 million hectares a year earlier.

Yield per hectare, however, fell to 4.04 MT per hectare from four MT per hectare last year.

Significant reductions in output were seen in SOCCSKSARGEN, MIMAROPA, Caraga, Western Visayas and Northern Mindanao, PSA said.

In SOCCSKSARGEN, harvest area contracted because of delayed cropping in South Cotabato as the Aris Dam 2 run by the National Irrigation Administration (NIA) was closed for rehabilitation.

In MIMAROPA, there were crops damaged by intense heat and insufficient water supply. The same thing occurred in Caraga, Western Visayas and Northern Mindanao.

PSA expects second semester palay harvest and harvest area to decline by 0.5 percent and 0.8 percent, respectively.

Palay production from July to September is seen to fall by 14.5 percent to 2.59 million MT from 3.03 million MT last year.  Harvest area could also contract from 773, 830 hectares to 658, 090 hectares.

With the exemption of Bicol, all regions expect decreases in production and harvest areas attributable to unrealized planting intentions and inadequate irrigation water.

Based on planting intentions for October to December 2015, production and harvest area indicate positive growth by 5.1 percent year-on-year. Yield is expected to remain at 4.05 MT per hectare.

Plantings are expected to be moved from the third quarter to the fourth quarter of the year

Food Security chief Francis Pangilinan, who oversees the National Food Authority (NFA),  said they would await production projections for the fourth quarter before considering the need to import more rice this year.

Early this year, a standby supply of 250,000 MT was approved for importation as needed should domestic production and supply be hit by the dry spell until the end of the year.