Philippine 1H corn output may fall 2.6 percent to 3.2 million tonnes

Philippine corn output in the first six months of the year is projected to decline 2.6 percent to 3.2 million tonnes as excessive rainfall was likely to discourage planting, the Department of Agriculture said Friday (Jan 23).

 

First quarter output is expected to fall 2.6 percent to 1.94 million tonnes on lower planting area, the Bureau of Agriculture Statistics said in a report.

 

"Delayed cropping and lesser plantings due to excessive rains may cause the decrease in production," the agency said.

 

While consistent rainfall is favourable to rice planting, it usually discourages corn cultivation.

 

According to the agency, production in the second quarter is likely to fall 2.75 percent to 1.26 million tonnes due mainly to crop shifting - mostly to rice and other cash crops.

 

The department has set a corn output target of 7.8 million tonnes for 2009 versus last year's output of 6.93 million tonnes.

 

In a related development, Agriculture Secretary Arthur Yap said the finance department has already approved in principle a plan to import up to 200,000 tonnes of corn at the in-quota tariff rate of 35 percent, which is lower than the out-quota import tariff of 50 percent importers would normally be charged.

 

The plan is intended to ease supply tightness in the local market, which led domestic prices to reach a record PHP26 a kilogramme last week, double the 2008 average price of PHP13/kg.

 

The imports are for arrival before May this year, Yap said.