October 25, 2004

Philippines to Increase Corn Support Price from PHP 6 to PHP 7.50/kg
 

The Philippine Department of Agriculture (DA) may increase the support price of corn from the present PHP 6 per kilo to about PHP 7 to 7.50 per kilo to shield corn farmers from the increasing cost of fertilizer, seeds, and labor.

Lawyer Judy Carol Dansal, secretariat head of the Corn Development Fund and extension director of the National Food Authority (NFA) said Agriculture Secretary Arthur C. Yap has directed an NFA study on the increase of buying support for corn.

"We are reviewing the costing to determine the right support price. There's a request to raise it to PHP 7 - 7.50. Secretary Yap asked NFA to look into the support price based on the cost of inputs - seed, fertilizer, labor. All of these have to be considered in the costing," she added.

Dansal said the review is based on a request for the increase of support price by the Philippine Maize Federation Inc. (PMFI), which is also asking for a representation in the Corn Development Fund (CDF) committee.

Aside from the support price, Dansal said NFA also agreed to negotiate for a higher price for corn farmers until December this year.

"Philmaize requested if we can maintain the price of corn delivered to Bulacan from Bukidnon to PHP 9.50 per kilo because the price is already falling to PHP 8.50 per kilo. We agreed to negotiate with corn end users (feed millers, livestock raisers) for this price for them so that if production cost is PHP 6 per kilo, they have a profit of PHP 3.50," she said.