Philippines expects $570m needed for rice subsidies
Tuesday, 29 July 2008
MANILA, July 28 (AFP): The Philippines could spend as much as about 570 million dollars this year to keep subsidising low-cost rice for the poor, the agriculture minister said today.
The government spent 10 billion pesos in the first half of the year so that people could buy rice at about 41 US cents per kilo, or around half the market price, Agriculture Secretary Arthur Yap said.
"At the rate we're going, we would go up to 25 billion pesos (569 million dollars) minimum, just for rice," he told reporters.
The Philippines produces only about 93 per cent of the rice requirements of its 90 million people, a third of whom live on a dollar a day or less.
Yap said the rice farming sector was under pressure because of the high costs of oil-based fertiliser, which he said accounted for 30 per cent of farmers' production costs.
The government spent 10 billion pesos in the first half of the year so that people could buy rice at about 41 US cents per kilo, or around half the market price, Agriculture Secretary Arthur Yap said.
"At the rate we're going, we would go up to 25 billion pesos (569 million dollars) minimum, just for rice," he told reporters.
The Philippines produces only about 93 per cent of the rice requirements of its 90 million people, a third of whom live on a dollar a day or less.
Yap said the rice farming sector was under pressure because of the high costs of oil-based fertiliser, which he said accounted for 30 per cent of farmers' production costs.