- The Philippines will keep rice imports open despite a record Q2 palay harvest.
- Ag chief says country is prioritising food security amid El Niño risks.
- A strong El Niño could cut palay output by 750,000 tonnes, with Q3 production forecast to drop 13.3%
Agriculture Secretary Francisco P. Tiu Laurel Jr said maintaining adequate rice stocks was now a greater priority as El Niño disruptions could potentially reduce palay output by 750,000 metric tonnes, according to latest projections.
“As of August 3, rice imports have reached 3.3 million metric tonnes. Unlike last year, we will not suspend imports because we have to prepare for the impact of a strong El Niño expected around November and December,” Tiu Laurel said.
“Our responsibility is to ensure the country has enough buffer stocks well before the next harvest. Food security means being proactive, not reacting after supplies tighten.”
The decision marks a departure from last year’s policy, when the Department of Agriculture (DA) halted rice imports from September to December to support farmgate prices during the main harvest.
A record harvest
The shift comes even as the country posted its strongest second-quarter palay harvest on record.
According to data from the Philippine Statistics Authority (PSA), palay production rose 5.7 per cent year on year to 4.63 million metric tonnes from April to June, the highest second-quarter output since comparable records began in 1987.
The increase was driven by a 6.5 per cent expansion in harvested area to a record 1.04 million hectares, offsetting a slight decline in average yields, the DA said.
The record harvest helped lift first-half palay production to around nine million metric tonnes, providing a stronger supply position heading into the second half of the year.
However, government forecasts point to more challenging conditions ahead.
Based on standing crops as of July 1, the PSA projects third-quarter palay production at 3.25 million metric tonnes, down 13.3 per cent from 3.75 million metric tonnes a year earlier.
The DA said delayed planting caused by the late onset of rains and irrigation delays could affect output in some areas as weather conditions evolve.
“For the DA, the record second-quarter harvest is not the finish line but an important head start. The priority now is to ensure production support reaches farmers on time, planting continues despite climate risks, and the gains achieved in the first half of the year are sustained through the second-semester harvest.”
Buffering against risks
In light of this, the DA said it would adopt a “flexible supply management strategy”.
Rather than limiting imports to support domestic prices, the DA plans to rely on expanded National Food Authority (NFA) procurement and farmer support measures to cushion growers against market pressure.
The NFA has been directed to purchase around 500,000 metric tonnes of palay during the wet-season harvest at a minimum buying price of PHP21/kg for wet palay and PHP25-27/kg for dry palay.
Tiu Laurel said President Ferdinand Marcos Jr had increased the agency’s procurement budget, strengthening its capacity to support farmers while rebuilding government rice buffer stocks.
Tiu Laurel, who also chairs the NFA Council, said the agency’s warehouses are now nearly half empty as milling activity gathers pace after recent delays.
The ag chief also plans to meet with rice millers to discuss what he described as a fair pricing structure across the supply chain, adding that locally produced rice should retail at around PHP47 to PHP50 per kilo.
“We want a market where farmers receive fair compensation, millers and traders operate sustainably, and consumers continue to enjoy reasonably priced rice,” he said.
