The country’s rice inventory as of July 1 rose by 31.9 percent to 2.625 million metric tons, from 1.99 MMT last year due to the significant hike in the buffer stock of the National Food Authority (NFA).
Data from the Philippine Statistics Authority (PSA) showed that on a monthly basis, the inventory at the start of the lean season was also higher by 1 percent than the June record of 2.598 MMT.
The PSA monthly report on the country’s rice inventory indicated that 41.9 percent, or 1.099 MMT, of rice were held by commercial warehouses while 1.008 MMT were in households.
The NFA’s buffer stock, which accounted for 19.69 percent of nationwide inventory during the period, was at 516,920 metric tons.
“Relative to the previous year’s level, increases were notable in all sectors. Stocks in the households and commercial warehouses were up by 1.6 percent and 16.4 percent, respectively. Likewise, stocks in NFA depositories exhibited a significant increase of 869.8 percent,” the PSA said.
“Compared with the previous month, stocks in the households and NFA depositories were down by 3.9 percent and 6.2 percent, respectively. However, stocks in commercial warehouses increased by 10.2 percent,” it added.
The NFA’s buffer stock is expected to rise in the coming months as it expressed its intention to continue buying unhusked rice from farmers even during the lean months of July to September.
The food agency reported on Friday that it overshot its target of 265,199.95 MT in July to August as its purchases reached 288,719.45 MT.
“The month of August has just started but the NFA has already bought a total of 26,036 bags [1,301.8 MT] in the first week,” NFA Administrator Judy Dansal said in a statement.
The top 10 provinces with high palay procurement record from January to August were Nueva Ecija, Occidental Mindoro, Isabela, Bulacan, Northwestern Cagayan-Apayao, Tarlac, North Cotabato, Mamburao, Cagayan and Pampanga.
The NFA stepped up its purchases of palay from local farmers following the effectivity of Republic Act 11203, which reduced its role to buffer stocking.
The food agency buys palay at the government support price of P17 per kilogram plus incentives of P3 per kg for buffer stocking, P0.20 per kg for drying, and P0.20 per kg for delivery and P0.30 per kg for cooperative development incentive fee.
In the same report, the PSA said the country’s corn inventory as of July 1 reached pegged at 822,700 MT, 71.1 percent over the 480,860 MT recorded in the same period last year.
However, the July corn stockpile was 4.3 percent lower than the 859,770 MT recorded inventory in June, the PSA added.
The bulk of the corn inventory was in commercial warehouses which accounted for 761,520 MT while the remaining volume of 61,180 MT was kept in households.
“In comparison with the previous year’s stocks inventory, increments were observed in the households and commercial warehouses by 1.5 percent and 81.1 percent, respectively. There were no cornstocks in NFA depositories during the month,” the PSA said.
“This month’s corn stocks in the households decreased by 23.6 percent and 2.3 percent in commercial warehouses from the previous month’s record. As in previous month, there were no corn stocks in NFA depositories for the month,” it added.
Data from the PSA indicated that rice production in the first half shrank by an annualized rate of 5.09 percent to 8.269 MMT while corn output fell by 4.33 percent year-on-year to 3.597 MMT.
The contraction in the production of the country’s two most important crops was traced to the adverse effects of El Niño, which dried up Philippine farms during the six-month period, the PSA said.