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PH’s Palay Production May Hit Record-High 20.2-M MT by 2025

Manila: The Philippines is on track to achieve a record-breaking harvest of palay (unhusked rice) totaling 20.2 million metric tons (MT) by the end of 2025, as announced by the Department of Agriculture (DA) on Tuesday. This anticipated production would surpass the previous record of 20.06 million MT set in 2023.

According to Philippines News Agency, DA spokesperson Assistant Secretary Arnel de Mesa, during a Palace press briefing, highlighted that even with conservative estimates, the country is poised to achieve another record harvest this year. The forecasted volume already considers the impacts of multiple weather disturbances, with around 7.5 million MT of palay projected to be harvested in the final quarter of the year.

The Philippines typically faces average annual production losses ranging from 500,000 MT to 600,000 MT due to natural calamities, with damage expected to peak at about 1 million MT in 2024 owing to El Ni±o, successive storms, and La Ni±a. De Mesa noted that the harvest could potentially increase, reaching up to 20.5 million MT, depending on the severity of typhoon impacts.

The 20.2 million MT forecast incorporates the 9.08 million MT record harvest from the first semester, 3.8 million MT production in the third quarter, and the anticipated output for the last quarter. De Mesa reassured that Typhoon Tino (international name Kalmaegi) would not significantly affect the rice sector as it traverses parts of the Visayas, with minimal impact expected in Iloilo, a major rice-producing area.

De Mesa also addressed the implications for palay prices, expressing optimism that the ongoing extension of the rice import ban would continue to elevate farmgate prices during the harvest season. Prices have increased from PHP8 to PHP10 per kg in previous weeks to now between PHP14 and PHP17 per kg, and even up to PHP20 per kg in certain areas since the import ban’s enactment.

The DA has identified a favorable buying range for farmers at PHP17 per kg for wet and fresh palay, and PHP21 to PHP23 per kg for clean and dry palay. The current production cost for Filipino rice farmers is estimated to be between PHP13 and PHP14 per kg.