Palay production target still within reach – DA

The Department of Agriculture (DA) said on Tuesday it is sticking to its palay (unmilled rice) production target of 20.44 million tonnes (MT) for 2024 despite the impact of climate events on the agricultural sector.

In a statement, Christopher V. Morales, Undersecretary of Agriculture for Rice Industry Development, said the DA has engaged private organizations to expand the reach of the rice production program.

“We are optimistic because it is still early June. We still strive for that. We are doing our best to achieve that,” he added.

The target of 20.44 million tonnes represents a reduction from the original 20.8 million tonnes set early this year, adjusted for El Niño.

The DA has estimated the damage caused by El Niño at €6.35 billion, with rice being the most affected crop, with damage amounting to €3.3 billion or 134,828 tonnes.

Last year, palay production was 20.06 million tons.

The Rice Tariff Law (Republic Act No. 11203) allocates 10 billion euros per year to support the Rice Competitiveness Enhancement Fund.

Mr Morales said domestic rice supply has remained “manageable” amid continued imports of imported rice to make up for shortfalls in domestic production.

Also on Tuesday, the National Economic and Development Authority approved further reductions in rice import tariffs from 35% to 15%, as ordered by Executive Order No. 50.

The U.S. Department of Agriculture forecasts rice imports will reach 4.2 million tons by 2025, surpassing the revised estimate of 3.9 million tons for this year. The Philippines remains the largest rice importer in the world.

Mr. Morales said DA programs such as hybrid seed supply and National Irrigation Administration contract farming programs should also boost palay production.

The Masagana Rice Industry Development Program aims to stabilize rice supply between 24.99 million tons and 26.86 million tons, moderating rice price growth to less than 1% per year. — Adrian H. Halili