THE National Food Authority (NFA) has set aside P3.9 billion for the purchase of 300,000 metric tons (MT) of yellow corn at the support price of P13 per kilogram.

The agency said it will buy corn from farmers during the main harvest season starting August.

In a statement, Agriculture Secretary Arthur Yap said the NFA has already set aside the funds as the agency prepares to buy more yellow corn from farmers in line with the government’s plan of engaging in corn trading.

“The new support price will provide farmers the flexibility to sell their corn in different parts of the country through the NFA’s electronic-trading system,” said Yap.

Under the electronic system, he said a corn farmer in Bukidnon can command a price of P13 a kilo using the new support price of the NFA for yellow corn, to sell his produce to a feed miller in Bulacan. The Bukidnon farmer can deposit his corn at the NFA warehouse in the province and the feed miller in Bulacan can pick up the stock from the NFA warehouse where the feed miller is based.

Yap said this could be the precursor to a futures-exchange system which will help ensure quality and stabilize grains prices in the country.

Corn farmers welcomed the support price increase. The Philippine Maize Federation (Philmaize) said the NFA move is timely in light of higher cost of production and as more imports of feed-grade wheat are coming in under Executive Order 765, which allowed the duty-free import of feed wheat.

Philmaize President Roger Navarro said his group hopes that the government will increase the volume of corn it plans to buy during the main harvest season.

“We understand that the recently approved support price of P13 per kilo is intended to cover only 10 percent of the main harvest,” he said. Corn production during the main harvest is expected to reach 3 million MT.

Philmaize, however, said the move will surely motivate more farmers to plant corn.

The government needs to encourage farmers to plant more corn due to a projected shortage in the produce. Citing the Department of Agriculture projections, some members of the Agriculture Alliance disclosed that the shortage of corn will reach 600,000 MT this year.