Despite the damage caused by typhoon “Urduja” in some provinces, Agriculture Secretary Emmanuel Piñol said total agriculture production in 2017 was still expected to grow by at least 5 percent.
Urduja was estimated to have caused some P701 million in damage to the agriculture sector, mainly in the rice subsector, with the Visayas bearing the brunt.
But the damage should be offset by the good rice harvest overall in the fourth quarter, when output usually peaks due to relatively favorable weather conditions.
The sub-sector accounts for about half of the country’s agricultural production.
For the first nine months of the year, local farmers were able to produce a total of 11.97 million metric tons (MT) of crops. For the agency to hit its target to produce 19.22 million MT, the last quarter’s yield must reach 7.25 million MT.
“We’re still on track. This year’s performance is a lot better than last year’s,” said Christopher Morales, officer in charge of field operations at the DA.
But while output can be managed, with the country nearing rice self-sufficiency, Piñol said the agency cannot control the sudden price hikes in rice.
“It is the farm-to-market chain that is flawed,” he said, “As far as production is concerned, DA is okay. But when it reaches the market, the traders and middlemen control the prices.”
Usually, rice is sold in the market at double the farm-gate price. But currently, rice is sold at around P50 a kilogram, even though the farm-gate price is just P15 a kilo.
The National Food Authority (NFA), for its part, has been lobbying for the increase in its palay procurement price to compete with that of traders, so the government can become a greater force in keeping rice prices stable.