PRODUCTION of palay, or unmilled rice, in the Philippines — one of the world’s biggest buyers of the grain — is forecast to increase 5.65% this quarter because of improved yields and increased harvest area, the state statistics agency said on Monday.

The Philippine Statistics Authority (PSA) said that production in January-March will probably hit 4.67 million metric tons (MT), based on standing crop, compared with 4.42 million MT harvested in the same period last year.

“Farmers are optimistic to have better yield resulting from sufficient water supply and good weather condition favorable to plant growth,” the report read.

Palay accounted for 25.82% — the biggest chunk among commodities — of the total value of the agriculture sector’s output in the fourth quarter.

A record-high rice harvest last year of 19.28 million tons — up 9.36% from 2016, which had seen a 2.88% drop in output — helped boost growth of the Southeast Asian nation’s agriculture sector, thanks largely to favorable weather.

The country’s state grains procurement agency plans to import 250,000 MT of rice as soon as possible to boost thinning stockpiles, and the prospective deal has already raised export prices in Vietnam, a major supplier.

CORN
The same report also bared expectations that output of corn — which contributed 4.76% to the total value of farm output in the fourth quarter — will increase by 5.05% to 2.49 million MT this quarter from 2.37 million MT in 2016’s first three months.

The PSA attributed its expectation this quarter to bigger harvest areas and better yields.

Corn output dropped by 5.73% by to 1.629 MMT in 2017’s final three months (compared to a 0.15% slip a year ago), although the grain managed to grow by 9.64% to 7.914 million MT for full-year 2017, turning around from 2016’s 3.99% drop.

Unfavorable weather, limited seeds and insufficient soil moisture, however, could weigh on output next quarter, the report read. — with Reuters

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