Global Rice News

The country’s rice production in the market year (MY) 2021-2022 will rise slightly to a record-level of 12.5 million metric tons (MMT) on the back of expanded area and improved yields nationwide, according to an international report.

A Global Agricultural Information Network (Gain) report projected that Philippine rice output in MY 2021-2022, which started in July and will end in June next year, will reach 12.5 MMT, which is 84,000 metric tons (MT) higher than the 12.416 MMT recorded in MY 2020-2021.

The latest rice output estimate by the Gain report, which was prepared by the United States Department of Agriculture Foreign Agricultural Service in Manila, was an upward revision from its earlier forecast of 12.3 MMT for MY 2021-2022.

“FAS/Manila increases the estimate for MY 21/22 milled rice production to 12.5 million, supported by both expanded area and improved yields beyond earlier expectations. The Philippines reported first quarter production and area planted were both up seven percent year-over-year,” the report, which was released recently, read.

“Industry contacts continue to note the role of the Philippine Department of Agriculture’s support programs for rice, which have positively influenced producer decisions, specifically as it relates to subsidies for hybrid seeds and fertilizers—prices for which have risen sharply,” it added.

In terms of rough production, palay output in MY 2021-2022 will reach 19.841 MMT from 19.708 MMT recorded in the previous market year, according to the Gain report.

The Gain report estimated that rice yield in the current MY 2021-2022 will reach 4.1595 MT per hectare compared to the 4.1386 MT per hectare recorded in the previous MY. Meanwhile, total area harvested will reach 4.77 million hectares from 4.762 million hectares.

Despite the slight increase in output, the USDA-FAS Manila maintained its 2.5 MMT rice import forecast for the current MY as imported staple “continues to be attractive” compared to locally-produced rice in terms of prices. The projected rice imports is 25 percent higher than the 2 MMT recorded in the previous MY.

“For MY 21/22, Post maintains the rice import estimate at 2.5 million MT. Imported rice continues to be attractive at local prices with reported exports to the Philippines increasing 78 percent [865,411 MT vs. 486,104 MT] during the first quarter of MY 21/22 vs. MY 20/21,” the report read.

“Meanwhile, the Philippines’ Bureau of Plant Industry [BPI] reported rice import arrivals during the same time period of 727,268 MT and 434,900 MT, respectively,” it added.

The Gain report also noted that the BPI did not stop issuing sanitary and phytosanitary import clearance (SPS-IC) for rice imports. However, the issuance of an SPS-IC for rice imports is now “taking up to one month to process,” according to the report.

Furthermore, the Gain report also kept its total rice consumption estimate for the Philippines in the current MY at 14.85 MMT, which is 400,000 MT higher than the 14.45 MMT recorded in the previous MY.

“Post holds consumption unchanged and representative of Post’s earlier market assumptions. Retail prices for rice remain steady,” it said.

Source: https://businessmirror.com.ph/2021/12/24/report-predicts-hike-in-phl-rice-yield-to-12-5-mmt-for-my-21-22/