PHL’s 2016 rice output to hit 18.7 MMT

14.12.2016

Favorable weather conditions in 2016 would boost the country’s paddy rice output to 18.7 million metric tons (MMT), according to the latest report from the Food and Agriculture Organization (FAO).

The FAO’s forecast is higher than the 17.91 MMT rice output projected by the Philippine Statistics Authority (PSA) for this year.

“After seeing the output depressed by precipitation shortages last year, abundant monsoon rains and improved water availabilities for irrigation are expected to lead to large recoveries in the Philippines and Thailand,” the FAO said in its report, titled Crop Prospects and Food Situation.

The FAO said the Far East Asian region’s combined paddy rice production for 2016 could go up to 673.4 MMT, from the 664 MMT estimated production in last year, on the back of increased growth from other countries fueled by favorable conditions.

“Much of the subregion’s projected growth is expected to be sustained by an output recovery in India, where paddy production is forecast at a record of 161.5 MMT,” the FAO said.

“This level would stand 3 percent above last year’s weather-reduced outcome, reflecting a more normal pattern of the monsoon this year and sustained government support to the sector, namely, large public-sector purchases at higher minimum support prices [MSP],” it added.

The FAO, however, said the paddy rice output of Indonesia, Vietnam, Malaysia and Timor-Leste for 2016 could decline, as their cropping seasons were affected by the aftermath of
El Niño last year.

“The outlook is more subdued for countries along or south of the equator, namely, Indonesia, Vietnam, Malaysia and Timor-Leste, as the dry conditions linked to the 2015-2016 El Niño negatively affected the 2016 main season crops, which were planted in the last quarter of 2015 and early 2016 and harvested in the first part of 2016,” the report read.

The FAO also said in the same report that the Philippines’s coarse gains production will increase to 5.8 MMT, from 5.6 MMT recorded in 2015.

“The subregion’s 2016 aggregate maize production is estimated at 294.4 MMT, marginally below last year’s record level, mainly reflecting a 9.6 MMT [or 4-percent] production decline in China,” the report read.

Data from the PSA showed that the country’s rice output in the July-to-September period rose by 16.35 percent to 3 MMT due to the expansion in harvested areas.

The PSA attributed this to the rehabilitation of irrigation canals and early occurrence of rains in Ilocos region, Cagayan Valley, Central Luzon and Northern Mindanao.

“The increased volume of production was also attributed to the improvement in yield on palay farms. This was due to increased usage of high-yielding variety,” the report read.


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