Manila, The Philippines
May 8, 2009
USDA/FAS GAIN report RP 9015
Report highlights:
The Philippine Department
of Agriculture (DA) recently announced it will be removing
starting September 2009 its subsidy for hybrid rice seeds,
while reducing in half its financial support for certified
rice seeds. The DA has ceased its subsidy for corn hybrid
seeds, including Bt corn, and open pollinated varieties.
General information:
The Philippine Department
of Agriculture (DA) recently announced it will be removing
starting September 2009 the P1,500/bag ($32.25) subsidy for
hybrid rice seeds, and reduce to P600/bag ($12.50) the
P1,200/bag ($25) financial support for certified rice seeds.
For corn, the DA is no longer extending seed subsidies for
both hybrids (which include Bt corn) and open pollinated
varieties (OPVs). Corn hybrid seeds used to be subsidized at
a rate of P1,200/bag while OPV corn seeds were subsidized at
a rate of P650/bag. According to DA Secretary Arthur Yap,
the funds for
the seed subsidy program will be rechanneled to farm
infrastructure instead.
Despite the removal of subsidies for the hybrid and OPV corn
planting seeds, national production is still projected by
the DA between 7.2-7.4 million MT for 2009, higher than the
previous year's 6.9 million MT output. For rice, the DA is
forecasting 2009 harvests to reach 17.2 million MT of paddy
rice, also higher than the 16.8 million MT harvests of 2008,
but lower than the previous target of 17.8 million MT.
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