Agri set for strong Q2 growth on rice, corn gains

Agri set for strong Q2 growth on rice, corn gains
SunStar Business
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THE country’s agriculture sector is poised for a stronger second-quarter performance, buoyed by improved weather conditions and increased government support, according to Agriculture Secretary Francisco Tiu Laurel Jr.

In a statement, the Department of Agriculture said it expects significant gains in rice and corn production—two major drivers of the country’s crop output, which comprises nearly 57 percent of total agricultural production.

Palay (unmilled rice) output is projected to reach 4.36 million metric tons (MT) in the April–June period, a 13 percent increase from a year earlier and slightly above the Philippine Statistics Authority’s (PSA) April estimate of 4.34 million MT. The increase is attributed to a 9.2 percent expansion in harvest area to 972,730 hectares, alongside yield improvements to 4.48 MT per hectare from 4.32 MT last year.

The rebound follows a modest 0.5 percent growth in agriculture in the first quarter of 2024, hampered by El Niño conditions. In contrast, the sector grew 2.2 percent in the first quarter this year, matching its performance in the same period in 2023.

Corn output is set to post even steeper gains. The PSA forecasts a 27 percent jump in second-quarter production to 1.487 million MT, with harvest area expanding 16 percent to 402,690 hectares.

The rice and corn gains reflect improved field conditions and stronger policy execution. Government interventions include support from the National Rice Program, the Rice Competitiveness Enhancement Fund, and higher procurement volumes from the National Food Authority, which currently buys palay at P18 to 24 per kilo.

Contract farming initiatives and irrigation programs from the National Irrigation Administration are also contributing to stronger farmer participation and productivity, Tiu Laurel said.

While upbeat on the latest projections, the agriculture chief emphasized continued vigilance and investment. “These numbers are encouraging, but this is just the beginning,” he said, citing the government’s goal of achieving food security by 2028. / KOC

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