Hazy '09 for palay farmers: P17/kilo farm gate price until Dec only

MANILA, Philippines- Local rice farmers have uncertain times ahead of them after the Department of Agriculture announced on Tuesday that the new farm gate price of P17 per kilo of the grain, which was instituted in March to support palay farmers, will last only until December. In a statement, Agriculture Secretary Arthur Yap said the National Food Authority "will maintain this support price for the rest of the year in keeping with the Arroyo government’s goal of not only boosting farm productivity but of making farming much more profitable as well." However, farm gate prices for palay beyond December have yet to be determined, NFA spokesman Tom Escares told GMANews.TV. "We still don't know. Only the President can tell. The final authority rests on the President," Escares said. Previous to March, the farm gate price for palay was P12 per kilo. The order to raise farm gate prices came from President Gloria Macapagal Arroyo to help farmers as the country copes with a global food security crisis. While buying palay at P17 a kilo, the NFA is selling its cheapest rice at P18.25 a kilo to depressed areas. Its role to subsidize the cost of rice sold to the country's poorest is the main reason why Finance officials claim that for this year, the NFA stands to lose as much as P43 billion. In 2007 NFA incurred almost P17 billion in losses and P80 billion in liabilities. Earlier former NFA chief Romeo David urged the government to review its policy to buy palay at P17 a kilo, also noting that the government will have a tough time in explaining to the farmers that it will only be temporarily buying palay at P17 a kilo. - with Cheryl Arcibal, GMANews.TV