RPT-UPDATE 1-Philippines' farm output up in Q1, upbeat on rice

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MANILA, May 13 (Reuters) - Philippine farm output in the first quarter of the year rose 4.0 percent year-on-year and rice production was on course to reach a record 17.3 million tonnes in 2008, the government said on Tuesday.

The farm sector, which accounts for around a fifth of economic output, grew 4.68 percent in 2007, while overall economic growth reached a 31-year high of 7.3 percent.

The government will announce first quarter economic growth figures later this month.

Agriculture Secretary Arthur Yap said the first quarter rice production figures meant the government did not need to hastily import more of the national staple.

"When we go back to the market, we will go back with a lot of flexibility," he told reporters.

The Philippines, the world's biggest rice importer, has bought about 1.7 million tonnes of the grain so far for 2008 and has said it may need about 2.2 million tonnes.

International rice prices have surged this year because of curbs by exporting nations and global worries about supply. Governments across the world, including in the Philippines, have been taking steps to ensure stability is not affected by food prices.

But Yap and other officials have said demand in the Philippines has essentially been met and further imports will be necessary only to maintain buffer stocks.