DA sees record-high palay output this ’25
The Department of Agriculture (DA) is optimistic about hitting a new record high in palay or unmilled rice production this year, as the government restored the P10-billion additional budget for the rice program.
The DA aims to achieve its original target of 20.46 million metric tons (MT) this 2025, higher than the 2023 record of 20.06 million MT.
“We’re now hopeful we could do better than 2023,” Agriculture Secretary Francisco Tiu Laurel Jr. said in a statement on Monday, adding that Mr. Marcos had given the green light to secure the necessary resources to drive palay output to more than 20 million MT.
Tiu Laurel said President Marcos’ decision to restore P10 billion in budget that had been earlier slashed out of the rice program would allow the agency to implement various strategies to attain this goal, but did not provide additional details.
In an interview on Monday, Agriculture Assistant Secretary Arnel de Mesa said the allocation for the National Rice Program was P21 billion under the 2025 national budget.
“We’re seeking additional P9 to P10 billion para sa rice program and it depends on the DBM (Department of Budget and Management) where they will source it. But most likely, I cannot comment on where they will secure additional funds. We’re requesting additional funds for the rice program,” said de Mesa, also the DA spokesperson
Federation of Free Farmers national manager Raul Montemayor said palay output over the last few years has increased minimally despite significant budget hikes.
Rice tariffication
“We have had major budget increases in the past but the output growth has been minimal, and even sometimes negative. It all depends on how that budget is spent,” Montemayor said in a Viber message.
The amended Rice Tariffication Law signed last December raised the budget for the Rice Competitiveness Enhancement Fund to P30 billion from P10 billion.
Montemayor pointed out that only P10 billion was assured in the approved budget and the remainder would depend on unprogrammed funds.
Underperformance in 2024
“There is also no clarity on how the P20 billion in excess tariff collections in 2024 will be used. So I am confused as to where the supposed P10 billion comes from,” he added.
The Philippine Statistics Authority (PSA) is set to report next week the agriculture sector’s overall performance in 2024, including palay production.
However, the DA previously indicated that last year’s volume might have reached 19.3 million MT, falling short of the 20-million MT target level due to a series of weather disturbances that had hit the archipelago, such as the dry spell caused by the El Niño phenomenon in early 2024 and flooding brought about by La Niña in the latter part of last year.
The Philippine Atmospheric, Geophysical and Astronomical Services Administration (Pagasa) earlier said that above-normal rainfall and a higher number of tropical cyclones are expected between January and March.
“Periods of cooler-than-average sea surface temperatures in the equatorial Pacific Ocean that started in September 2024 continue to persist and further strengthened reaching the La Niña conditions threshold in December 2024, as shown by the recent oceanic and atmospheric indicators,” Pagasa said in a statement.
Meanwhile, the DA said the National Food Authority (NFA) was targeting to purchase at least 300,000 MT this year as part of the latter’s mandate under the RTL to maintain 15 days of allowance for national consumption.
Last year, the grains agency bought palay equivalent to 300,000 MT of rice, which the DA said helped stabilize rice supply amid supply woes.
“The combination of lower palay production, higher procurement by the NFA, and a reduction in rice tariffs contributed to the country’s rice importation reaching 4.75 million metric tons in 2024,” the DA said.
