Philippines to export yellow corn to Vietnam

(Updated 3:00 p.m.) The National Food Authority (NFA) is in talks with Vietnam to export yellow corn amid declining prices, Agriculture Secretary Arthur C. Yap said. In a statement, Yap said this is the first time for the government to commercially export yellow corn, whose production has been increasing. “We have consulted with the local corn farmers and we have reached in agreeable terms," Yap said. NFA Administrator Jessup Navarro said the government is ready to export 50,000 to 150,000 metric tons (MT) of corn from Isabela, Pangasinan, Mindoro, Bukidnon and other provinces. The government will buy corn at P10 per kilogram instead of the prevailing market price of between P6.50 and P7. “This will enable the government to buy more grain as well as provide income to the farmers," Yap said. At P10 per kilogram, this is 23 percent lower than the P13 per kilogram government support price. “Yes, Secretary Yap made the announcement in Isabela. What can we do? We’re told it’s better this way than to have nothing at all. Beggars can’t be choosers. Even the corns delivered to the NFA regional offices remain unpaid," Philippine Maize Federation Inc. president Roger Navarro said in a text message. In the second semester, corn production is seen to climb close to a quarter to 802,964 MT from 656,723 MT in region 2 while northern Mindanao and the Autonomous Region for Muslim Mindanao will likely record substantial growth. Navarro said there is a memorandum that effectively raised the support price for corn to P13 per kilogram. "What growth and support can we expect from an Agriculture department that changes the rules mid-way," he added. NFA will increase its corn procurement by 200 percent this year to 300,000 MT to mitigate effects of further decline of the grain. PhilMaize warned corn farmers will lose P15 billion in the second semester on lower prices and duty-free importation of feed wheat, which substitutes corn. The group criticized Executive Order 765, which was issued by President Gloria Macapagal-Arroyo in 2008, that reduced local corn prices. The order modified the import duty, in a bid to help stabilize the price of bread and other baked food products last year. -with Ruby Anne M. Rubio, GMANews.TV