Author: DA Press Office 

Agriculture Secretary Francisco P. Tiu Laurel Jr. is optimistic that the Philippines could set another record for palay production this year, following President Ferdinand Marcos Jr.’s directive to restore the Department of Agriculture (DA) budget for rice production.

“We’re now hopeful we could do better than 2023,” said Secretary Tiu Laurel, referring to the record-high 20.06 million metric tons of palay produced in the country that year. He emphasized that President Marcos has given the DA the green light to secure the necessary resources to drive palay production to a volume in excess of the 20 million metric tons.

The DA chief said that President Marcos’s restoration of P10-B in budget cuts for the rice program will allow the agency to implement strategies aim at hitting an original target of 20.46 M metric tons of palay for this year.

The country’s palay production faced challenges last year. A dry spell brought on by the El Niño phenomenon early in 2024 and crop damage caused by flooding during La Niña in the latter part of last year had resulted in a decline in rice production. The preliminary estimate for 2024 rice output is approximately 19.3 million metric tons, below the previous year’s record.

Secretary Tiu Laurel highlighted that alongside production support, the National Food Authority (NFA) will continue its aggressive rice procurement program. This program allowed the NFA to fully stock its warehouses for the first time in years, which is a key development for the country’s rice security.

As chairman of the NFA Council, the policymaking body of the NFA, Secretary Tiu Laurel reported that last year, the NFA purchased palay equivalent to 300,000 metric tons of rice. This strategic procurement helped stabilize rice supply despite challenges in local production.

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. Secretary Tiu Laurel noted that the NFA’s purchase of 300,000 metric tons last year had effectively removed that amount from the market, compelling importers to make up for the shortfall.

“This year, NFA will buy a minimum of 300,000 metric tons,” said Secretary Tiu Laurel.

The amended Rice Tariffication has raised the rice buffer stock the NFA to cover 15 days of national consumption from 9 days previously.

Published Date: January 20, 2025