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Agri output growth seen positive in Q2 due to strong palay prices

Farmers are seen in a rice field in Bustos, Bulacan, Oct. 17, 2023. — PHILIPPINE STAR/KJ ROSALES

THE Department of Agriculture (DA) said it is confident of a solid performance by the agricultural sector in the second quarter, noting the strong prices realized by farmers for palay (unmilled rice).

Citing initial reports from the Philippine Statistics Authority, Arnel V. De Mesa, DA spokesman and assistant secretary for Special Concerns and Official Development Assistance, told reporters last week that rice production could be set to increase judging by the strong palay prices, as well as the restoration of 30,000 hectares planted to rice that had suffered typhoon damage during the fourth quarter of 2025. 

He added that fisheries and non-rice crops such as corn had been projected to recover in the second quarter.

“We are expecting production to be okay because a large portion of the sector’s output is in rice,” Mr. De Mesa said.

Mr. De Mesa added that going forward, exports are also set to increase, citing ongoing trade negotiations with Japan to amend the Japan-Philippines Economic Partnership Agreement, as well as with the European Union and Canada.

“Once (the trade deals are concluded), they will contribute to the increase in our production of high-value commercial crops,” Mr. De Mesa said, noting that items like mangoes and coconut oil command premium prices.

Mr. De Mesa said that the challenges for agricultural production in the third and fourth quarters include El Niño and still-high prices for petroleum products and fertilizer due to the fighting in the Middle East.

He said the DA has directed regional field offices to explore ways to maximize yields in areas not expected to be affected by El Niño.

Mr. De Mesa also called for improved water management to mitigate El Niño, saying: “We need to clean the canals, we need to release shallow tube wells, solar irrigation. Our last recourse is cloud seeding if water is really lacking.”

He said rainwater brought in by typhoons such as Typhoon Bavi (local name Inday) will be closely watched for their impact on the country’s depleted reservoirs.

“Typhoons are important at this time to refill our dams because here in Luzon, there was a reduction in the release of irrigation water to our large irrigation systems,” Mr. De Mesa said. — Marron Joshua F. Mendoza

https://bworldonline.com/agribusiness/2026/07/13/762778/agri-output-growth-seen-positive-in-q2-due-to-strong-palay-prices/ QR Code

Published Date: July 13, 2026

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