Philippine government earmarks US$80.74 million for huge corn purchases

The Philippine Department of Agriculture department has allotted more than US$80 million (P3.9 billion) for a massive corn purchase of 300,000 tonnes of yellow corn from local farmers at a higher price of P13 (US$0.26) per kilo to entice them to plant more, secretary Arthur Yap said.

 

In a statement, Yap said the rate adjustment is the second in seven months as it hiked its per kilo support price to P11.50 in November from P10.

 

Corn is a main component of livestock feeds.

 

With the new support price of yellow corn pegged at the same rate as white corn, this will provide farmers flexibility to sell their corn in different parts of the country through the National Food Authority's electronic trading system.

 

Under this electronic system, a corn farmer in Bukidnon can command a price of P13 a kilo using the new support price of the NFA for yellow corn, to sell his produce to a feed miller in Bulacan, Yap said.

 

He said a Bukidnon farmer can deposit his corn at the NFA warehouse in the province and the feed miller in Bulacan can pick up the stocks he bought from him at the NFA warehouse in Bulacan. This could be the precursor of a futures exchange system, which will help ensure quality and stabilize prices of grains in the country, Yap added.