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PHL Rice Output Stagnant Since 2017 but consumption is increasing – study

towards Vonn Andrei E. Villamiel

Rice production in the Philippines has increased significantly since 2017, as consumption continues to rise, leaving the country increasingly dependent on imports, according to a study by the Ateneo de Manila.

According to data from the Philippine Statistics Authority (PSA), researchers say that by 2022, consumption will exceed domestic production by 2.3 million metric tons (MMT), which is equivalent to a deficit of 18%.

In the ten period leading to 2023, the total Palay (unmilled rice) production of 9% – from 18.4 mmt to 20.1 mmt. The area planted to rice increased by only 1%, while average yields increased by 7% from 3.9 to 4.2 metric tons per hectare.

PSA reported that in 2024, Palay production decreased to 19.09 MMT due to consecutive weather events. In the same year, the Philippines, the largest importer in the world, delivered 4.68 mm of rice, according to data from the Bureau of Plant Industry.

Researchers from the John Gokongwei School of Management and the Department of Natural Resources point to limited farm expansion, slow yield growth, climate shocks, and uneven social investment as the main factors behind resilience.

The report also said that villages are not the main driver of rice farming.

Asked to comment on the results of the study, Agriculture Secretary William D. Dar was told Businessworld Via Viber the findings found that the government’s resources for rice do not lead to sufficient profits in production.

“It is sad to see that there is a growing shortage of rice in the country. We are doing much better with the 65% of the agricultural budget that we have dedicated to increasing rice production,” he said.

Federation of Free Farmers National Manager Raul Q. Montemayer said the study’s findings confirm longstanding warnings that local production is being pushed back as farmers struggle to compete with more imports.

“We have been saying that all our domestic production is not getting the population and the growth has shown that the production is done cheaply,” said Mr Montemaye. Businessworld Via Viber.

He also added that excessive importation, in turn, emphasizes the prices farmers get for their palay, and discourages farmers from increasing production.

According to the study, between 2018 and 2023, rice output rose 40% in the independent region of Bangsamororo in Muslim Mindanao, driven by infrastructure investment and political stability.

Cagayan Valley and ILocos Region posted increases of 27% and 16%, respectively, supported by expanded irrigation, improved seeds and farm operations.

Rice production fell by 15% in the same period in the administrative region of the Cordillera and decreased by 11% in the emergency areas of the East, driven by the loss of farms, strong storms, typhoons and drought, and farmers from the most profitable drought.

Apart from measures such as RECIRE PRACTITIENTET MEXTENT (RCEF), researchers say that national programs are sufficient to produce in Laggard regions.

The RCEF, part of the rice tax law, channels tax revenue from rice imports to farmers through improved seed, credit operations, credit, and extension services.

“Extensive evaluations suggest that the RQEF does not change consistently in the developed sector or product … Weak social challenges, and insufficient investment, have limited the effectiveness of programs like Ref,” the study said.

Mr. Dar added: “The results … led us to conclude that many of these various interventions and subsidies for rice farmers cannot contribute much to the production, hence the low production,” he said.

The authors of the study say that stopping rice growing will require comprehensive, climate-resilient strategies, including more intensive irrigation, better support services, and measures to reduce production costs.

“Our research highlights the need for an efficient and comprehensive approach to solving the rice crisis in the Philippines, one that includes seed intervention and capacity building funds,” the report said.

Mr. Dar said the government should focus on ensuring farmers’ training, support skills if they want to reduce the deficit.

“We need to strengthen the training of rice farmers and improve the capacity of extension agents. It is necessary to strengthen the cooperation of DA (local government units) by using the right technology. Indeed,” he said.

Mr. Montenaye said that it is necessary and attention should be given to improving the farmer’s work and change it “away from self-confidence at the expense of farmers.”

“If farmers generate income from rice damage, they will invest money and effort in their farms, and this will be the key to improving productivity and competitiveness in the state will improve their producers if they continue to lose money,” he said.

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