The Philippines has raised its domestic purchase
price for yellow corn for the second time this year to boost output and
is considering more increases as farmers push to export the grain.
The Department of Agriculture said it had approved a
15 percent increase in the price of yellow corn, used mostly for feed,
to P11.50 ($0.24) a kg and is considering raising it again to P13 — the
price sought by farmers.
"We are endorsing the proposal to further increase
the yellow corn support price in response to the clamour of corn
growers, many of whom have shifted to other crops for higher profits,"
Dennis Araullo, assistant agriculture secretary, said in a statement.
The government in August increased the purchase price
for yellow corn to 10 pesos a kg from 7 pesos amid concerns it might not
be able to meet its production target in the second half with corn
growers hit by escalating fertiliser prices.
The Southeast Asian nation produces just 1 percent of world corn
output but surging fertiliser costs and poor prices at home have
prompted farmers to plant less or consider selling part of their output
overseas. - Reuters
