Production of ?palay,? rice before milling, has exceeded government targets in the first half of the year, reaching 7.12 million metric tons from about 91 percent of lands planted to the grain, according to data from the Department of Agriculture.

The department had earlier estimated palay production in the first half at 7.0-7.1 million tons, compared with 6.7 million in the same period last year.

The Department of Agriculture Rice Action Center (Darac) said 7.12 million tons of palay had been harvested from 1.77 million hectares of land, out of the total 1.94 million hectares of rice land nationwide.

The department said that given the first-half performance the government would likely reach or even exceed its full-year palay production forecast of 17.32 million tons, compared with 16.24 million tons in 2007.

It expects palay production in the second half, the main planting season, to exceed 10 million metric tons.

If achieved, the full-year forecast volume will bring the country?s rice self-sufficiency level to 92.38 percent.

The department said additional imports by the National Food Authority (NFA) would still be needed to beef up inventories. The NFA wants to double its stock to 30 days? worth, from the normal 15 days? worth.

The Philippines contracted 1.713 million tons of rice imports as of end-April, just enough to cover a projected 10-percent shortfall and also enough to cover the original supply-demand gap forecast for the traditional lean months of July to September.

Of that volume, some 1.2 million tons have been shipped to the country.

Agriculture Secretary Arthur Yap said in a phone interview that the government would discuss rice procurements with China and Pakistan, apart from Japan and Thailand.

At an auction Wednesday by the NFA, 26 food companies and farmer organizations from Manila, Davao and Cebu placed orders for 27,630 metric tons of rice?a mere 13.8 percent of the maximum 200,000 metric tons that was up for bidding.

Prices of Thai 100 percent B-grade white rice, the world?s main benchmark for global trade, was quoted at $950 a metric ton as of June 9, and the international price of 25-percent broken well-milled rice is hovering around $825 a ton, an NFA official said.

?Some traders are probably waiting for prices to still go down,? NFA Assistant Administrator Conrado Ibañez said. ?They will likely want to participate in the next two auctions, hoping that prices will be further reduced by that time.?

Ibañez said another reason was that there was enough supply of rice in the market to cover most if not all of the requirements of the local traders.

Wednesday?s tender was the first of three that the NFA had scheduled for this month.

Ibañez said there were more participants and bigger orders than at two auctions in May.

In the May 9 auction, private traders placed orders for 21,560 metric tons of rice.

The Philippines, which has become the world?s biggest rice importer, wants to import a total of 2.1 million metric tons of rice this year to ensure the buffer stock is kept at 30 days until yearend. Edited by INQUIRER.net