The country’s palay production is expected to decrease by 8.4 percent in the second quarter, dropping to 3.9 million metric tons due to dryer weather conditions. This forecast was released by the Philippine Statistics Authority (PSA), indicating a decline from the 4.25 million MT produced in the same period last year. The PSA’s updated estimate for the second quarter is 3.89 million MT, lower than their initial forecast of 3.91 million MT.
The PSA attributes this decrease to a contraction in the palay harvest area, which was down by 7.12 percent compared to the previous year. The average yield per hectare is also expected to decrease to 4.39 MT from 4.42 MT in the second quarter of the previous year.
Industry experts point to the impact of the El Niño phenomenon on farms as a major factor in the projected decline in palay production. The dry weather conditions have heavily affected irrigation systems, with some farmers resorting to irrigation pumps or refraining from planting altogether.
In a related development, the country’s total rice stocks as of May 1 have increased by 10 percent year-on-year to 2.075 million MT. This growth is mainly driven by a larger commercial inventory resulting from higher imports. The PSA report shows that commercial rice stocks make up over half of the nationwide inventory, reaching 1.142 million MT.
Overall, the current agricultural landscape reflects a challenging environment for rice production, with farmers facing various obstacles in maintaining adequate yields.
