Manila, Jan 23, 2009 - Early rains in the Philippines should boost rice output of the world's largest importer of the staple, government data showed on Friday.
But the rains will hit the feed industry which fears a shortfall in corn production because of excessive soil moisture that might delay planting and raise the need for more imports.
Unmilled rice output was forecast to rise 1.3 percent to 7.21 million tonnes in the first half of 2009 from the same period last year, aided by early planting and improved irrigation, according to the official estimates.
But early rains would depress corn output as excessive soil moisture delays planting of the crop.
Corn output was projected to drop 2.6 percent to 3.21 million tonnes in January-June from the year-earlier period, the Bureau of Agricultural Statistics said on its website.
Local feedmillers said last week they will import 200,000 tonnes of corn to counter a shortfall in domestic supply.
Agriculture Secretary Arthur Yap said on Friday that more imports were possible.
"It's a possibility," he said, adding that imports of both corn and feed wheat should help stabilise domestic corn prices which have been rising recently amid tight supply. Corn and feed wheat are alternatively used for animal feed.
The agriculture statistics agency said the rice harvest season in the second quarter was likely to be brought forward to the first quarter, as favourable weather conditions encouraged early cropping.
"The availability of seeds, restoration and rehabilitation of some irrigation facilities, continuous release of irrigation water and early onset of rainfall allowed early plantings," the agency said.
Unmilled rice production in the Philippines reached 16.82 million tonnes last year, 3.5 percent higher than in 2007. Corn output last year was 6.93 million tonnes, up 2.8 percent from 2007.
Manila expects delivery of 500,000 tonnes of rice from Vietnam in February and March, part of a supply deal involving at least 1 million tonnes of the grain, a source with knowledge of the shipment told Reuters earlier this week.
Yap, without confirming the Vietnam deal, had repeatedly said that the Philippines has substantially secured its rice import needs for 2009.
Manila was the world's biggest rice importer last year, after purchasing a record 2.3 million tonnes of the staple and helping push prices to all-time highs.