October 25, 2012
 

Cagayan Valley corn farmers deny hoarding claim
 

Contrary to reports that traders are stocking up on corn, farmers in Cagayan Valley, the Philippines, deny that there is no hoarding of corn and that the Department of Agriculture (DA) said traders bought corn with moisture content from 14 percent to 15 percent at a price ranging from PHP15 and PHP15.20 a kilo.

However, a report prepared by agriculturist Nenita M. Yabis and Juan S. Agsawa of the Regional Field Units Region 2 said that on the third week of October, buyers from Bulacan came and offered a price of only PHP13.60 a kilo, which the Cagayan traders naturally rejected.

The traders refused to sell their corn stock since the price offered is lower than their buying price and in the meantime, the traders are holding on to their corn grains and are awaiting a better price, Yabis and Agsawa said.

The two RFU officials said there report is based on the disclosure of the chairman of the Regional Agriculture and Fisheries Council (RFAC), Isidro Acosta and Edgar de Luna, chairman of the Villaluna Multipurpose Cooperative (MPS) of Villaluna, Cauayan.

Earlier, DA assistant secretary Edilberto de Luna told the local daily BusinessMirror that talk of spiralling corn prices was incorrect and noted that the price of the grain actually did not go beyond PHP16 a kilo.

In effect, DA officials are saying that Isabela traders do not want to lose their shirt by acceding to the offer of Bulacan traders, who will be selling the same grain to hog and poultry raisers.

Since the story about the possibility of exporting yellow corn came out, reports about hoarding also intensified.

Thus, the basis for the story about hoarding is the expectation that the National Food Authority (NFA) Council would allow the export of about 100,000 metric tons (MT) of corn.

DA's de Luna said there is nothing irregular about exporting corn in the face of rising prices worldwide as the US grapples with drought.

Moreover, up to 40 percent of corn stocks are said to have been set aside for ethanol production, and this has pushed prices higher.