July 28, 2011

Philippines doubling subsidy for corn production in 2012

The Philippines is planning to double its subsidy next year for corn production, among other subsidy increases for agricultural industries, as part of its food sufficiency program.

President Aquino said that the government will raise the subsidy for the National Corn Program to PHP951 million (US$22.58 million) in 2012, from PHP484 million (US$11.49 million) in 2011, to meet the target production of 7.6 million tonnes.

Aquino, in his 55-page budget message to Congress, said, "Corn is second to rice as the most important crop in the Philippines. It is the best candidate agricultural produce of the country to help ease the pressure on rice demand. Increasing corn production output means a lot in attaining food sufficiency."

Aquino said that to achieve rice and food self-sufficiency, the government has allocated PHP24.8 billion (US$588.9 million) for irrigation development in 214,055 hectares of land, which will benefit 142,767 households.

The National Rice Program has been allotted PHP6.2 billion (US$147.2 million) in 2012, against PHP4.3 billion (US$102.1 million) this year, much of which will go to the purchase and distribution of post-harvest equipment and machinery, according to Aquino.

The Philippines has a production target of 19.2 million tonnes of rice, or a sufficiency rate of 91.9%, compared with 80% and 84.4% in 2010 and 2011 respectively.

Aquino said that for 2012, his government has earmarked PHP1.3 billion (US$30.9 million), 44.2% higher than the budget for this year, for post-harvest facilities and equipment, farm equipment, and irrigation.

The fisheries sector will also be given a PHP1.9 billion (US$45.1 million) budget to boost production by 5.6 million tonnes from commercial, municipal, and aquaculture fisheries.

PHP1 billion (US$23.7 million) has been allotted to the national livestock program to reach a target of two million tonnes of hogs and 15 million tonnes of chicken. Aquino said the money will go to the purchase of post-harvest facilities and equipment such as biogas digesters, dairy processing plants, slaughterhouses, and cold storage.