2008-07-09 09:01:56 - The Arroyo administration has already spent P10 billion in rice subsidy during the first half of the year.

Manila

www.balitapinoy.net

The Arroyo administration has already spent P10 billion in rice subsidy during the first half of the year.

This was revealed today by Agriculture Secretary Arthur Yap, who said that the actual landed cost of National Food Authority (NFA) rice per kilo is P30, way above the government-subsidized selling price of P18.50 per kilo.

In a press briefing

in Malacanang hosted by Press Secretary Jesus Dureza this afternoon, Yap pointed out that while the government 'traditionally' sources 280-300 metric tons of rice at this time of the year, it will buy 440 metric tons until next month.

He said that owing to the government's continuing buildup of its rice buffer stock, 'ang presyo ng bigas, medyo nagre-retreat na ngayon (the price of rice is now on retreat).'

He added that aside from the P10-billion rice subsidy, the government is helping farmers through its fertilizer cash-discount coupons program to the tune of P1.3 billion.

A coupon entitles a holder to buy fertilizer from retailers at a P250 discount per bag. A farmer is entitled to two coupons during the planting season, Yap said.

He added that the agriculture department also has a P2-billion budget for the acquisition of 2.1 million seeds to be planted this wet season, plus P2.5 billion for the purchase of rice and corn dryers.

On the other hand, farmers who need loans this planting season could borrow from the Land Bank of the Philippines (LBP), which has allocated P5 billion for lending to the farming sector, Yap said.

Meanwhile, the guarantee fund, which was earlier established from the five percent savings of government-owned and controlled corporations (GOCCs), has already reached P1.5 billion, he said.

The guarantee fund was created under Administrative Order No. 255, which was signed early this year by President Gloria Macapagal-Arroyo.
(Balita Pinoy - Philippine news & Analysis)