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Manila Sees 2009 Rice Output up 3.8 pct

Source: Reuters
19/08/2009

Manila, Aug 18 - Philippine unmilled rice output is forecast to rise nearly 4 percent to 17.45 million tonnes in 2009, according to government estimates on Tuesday, which could limit further overseas purchases by the world's biggest importer.

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The forecast output is equivalent to more than 11 million tonnes of milled rice and with consumption by the Southeast Asian nation expected to hit nearly 13 million tonnes this year, the country may have secured enough supply of the national staple.

The Philippines has imported 1.775 million tonnes of milled rice in 2009, including 1.5 million tonnes it bought from Vietnam via a government-to-government deal. In 2008, Manila's rice imports reached a record 2.3 million tonnes, helping send world prices to record highs.

Government rice stocks, held by the state-run National Food Authority, currently stand at 1.36 million tonnes, enough for nearly 39 days consumption.

But Manila is continuing efforts to bolster rice supply, and could make pre-emptive imports to meet next year's shortfall.

Last week, the government said it hoped to soon sign an agreement with Thailand that will see Bangkok giving priority to Manila in the sale of Thai rice.

Vietnam is also reportedly eyeing selling 700,000 tonnes more of the grain to the Philippines until the end of 2009.

The country's paddy rice output is forecast to climb 3.7 percent to 3.59 million tonnes in the third quarter and by 4 percent to 6.48 million tonnes in the last quarter of 2009, normally the bumper crop.

Production in the first half reached 7.38 million tonnes, up 3.6 percent from the same period last year.

The latest estimate, based on farmers' planting intentions, is due to increased cropland and better yield, the Bureau of Agricultural Statistics said.

Manila is expecting better harvests even though government estimates showed a series of tropical cyclones and typhoons would cut projected production for the third quarter by 1.6 percent.

Corn output for the year was forecast to rise 2.26 percent to 7.09 million tonnes, also aided by increased cropland and yield. Production in January-June dropped 2.3 percent to 3.29 million tonnes.



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