Philmaize opposes subsidy cuts in 2011 NFA budget

Corn farmers led by the Philippine Maize Federation (Philmaize) are against the proposal by the departments of Finance and Budget to remove the marketing and price subsidy of the National Food Authority (NFA) for 2011. “We vehemently denounce the recent pronouncement of this administration to scrap the marketing support to our local rice and corn farmers. There is a law that mandates that marketing support is guaranteed to rice and corn for our food security," Philmaize president Roger Navarro said in a presentation during the 19th Mindanao Business Conference Monday. Under Sec. 25 of Republic Act 7607 or the Magna Carta of Small Farmers, the Agriculture Department was directed to establish a price support system for certain agricultural products, especially rice and corn. The law indicates that the price support is needed to increase the real income of small farmers. “The government shall also endeavor to set farmgate prices that respond to the changing economic conditions," according to the law. Philmaize said that while farmers believed in the conditional cash-transfer program of the government, the group underscored that the marketing and price support policy laid out by the RA 7067 should be observed unless Congress repealed the law. NFA Administrator Angelito Banayo warned that farmers would be disadvantaged should government remove the NFA subsidy on palay and milled rice procurement. The food agency is mandated to buy palay from local farmers at P17 per kilogram support price, and imports milled rice from neighboring Asian countries to be sold at P25 per kilo in wet markets. These activities are in keeping with the agency’s mandate of stabilizing the supply and price of grains. Agriculture Secretary Proceso Alcala has assured that government will continue to buy palay from farmers at a support price of P17. Alcala also denied reports that the NFA will lose its subsidy for next year. Banayo said he would appeal for the Senate and the House of Representatives retain NFA’s corporate budget for 2011. —JE/VS, GMANews.TV