Palay output seen to grow in fourth quarter

By Marianne V. Go (The Philippine Star) Updated December 19, 2010

MANILA, Philippines - Palay (paddy rice) production will likely improve in the fourth quarter, minimizing the country’s planned rice importation for 2011, Agriculture Secretary Proceso Alcala said.


In a press briefing, Alcala said he remains confident the Philippines will not be at risk of price hikes from the government’s policy shift of allowing private rice traders to take on the bulk of rice importations as the National Food Authority (NFA) focuses its support more on farmers.

He said based on preliminary reports on standing crops of palay for the fourth quarter, production up to the first quarter of 2011 would be good. The Department of Agriculture is validating these numbers before firming up calculations on the country’s possible rice import volume for next year, he added.

The DA chief assured that whatever rice import volume the NFA board finally recommends, the NFA would not purchase the entire volume in one bidding, but would “stagger” the rice purchases.

Alcala stressed that the NFA would only purchase enough rice to maintain a 30-day buffer stock and would leave it to the private sector to import additional rice stocks.

The government, Alcala said, is gradually refocusing the NFA to provide more support to the farmers through the palay support price – rather than to consumers.

Thus, the Aquino government, he said, is trying to finally reduce the NFA’s huge losses from its money-losing rice importations.