The Department of Agriculture (DA) is optimistic about surpassing last year’s rice production figures, with projections aiming for a new record in palay output this year. Following a directive from President Ferdinand Marcos Jr. to restore P10 billion in funding for the national rice program, the DA is now working toward a target of 20.46 million metric tons (MT) of palay.
In a statement issued Monday, the DA said the additional budget would enable the agency to implement strategies boosting production. While the preliminary estimate for 2024 rice output is around 19.3 million MT, which represents a 3.8 percent decline from 2023’s record-high of 20.06 million MT, DA Secretary Francisco Tiu Laurel Jr. expressed confidence that the funding boost would help exceed the 20 million MT threshold.
The DA’s overall budget for this year amounts to P200.19 billion, with P31.4 billion allocated to the National Rice Program and another P10 billion earmarked for the Rice Competitiveness Enhancement Program (RCEP). Despite the optimistic outlook, the DA acknowledged that the previous year’s decline in rice production was largely due to climatic challenges, such as a dry spell linked to the El Niño phenomenon in early 2024 and flooding caused by La Niña towards the end of 2023.
Moreover, the National Food Authority (NFA) is set to continue its aggressive rice procurement program to stabilize supply. In 2023, the NFA purchased 300,000 MT of palay, which significantly contributed to market stability amid local production challenges. The NFA plans to maintain this procurement level in 2024, ensuring adequate buffer stocks are available.
However, some stakeholders are not entirely convinced by the DA’s optimistic projections. The Federation of Free Farmers (FFF) pointed out that despite previous budget increases, rice output growth has been minimal in some years. Raul Montemayor, FFF national manager, stressed the importance of how the allocated funds are spent, noting that the full implementation of the Rice Competitiveness Enhancement Fund (RCEF) remains uncertain, with only P10 billion confirmed for 2024, while the rest of the funds depend on unprogrammed allocations.
The Samahang Industriya ng Agrikultura (SINAG) also emphasized that a return to a 35 percent rice tariff—down from the current 15 percent—would add as much as P15 billion directly to RCEF, providing much-needed support to farmers. SINAG executive director Jayson Cainglet underscored the importance of a good palay price, recommending a floor price of P23 per kilogram to ensure farmers continue planting.
Meanwhile, Danilo Fausto, president of the Philippine Chamber of Agriculture and Food Inc., agreed with the DA’s target of a higher output but attributed the potential increase more to favorable weather conditions and better irrigation management than to the budget increase. He expressed hope that the absence of El Niño and La Niña, combined with improvements in irrigation systems, would contribute significantly to higher palay production.
The debate on the effectiveness of the budget increase and the role of market policies highlights the complexities of rice production in the Philippines. As the country looks to boost its agricultural sector, it remains to be seen whether the additional funding and policy adjustments will be sufficient to meet the ambitious target set for 2024.
