DJ Philippines' Grain Agency To Buy Paddy Rice At PHP17/Kilo

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DJ Philippines' Grain Agency To Buy Paddy Rice At PHP17/Kilo

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Sat, 19/05/2012 - 8:50 am.

DJ Philippines' Grain Agency To Buy Paddy Rice At PHP17/Kilo

MANILA (Dow Jones)--Philippine President Gloria Macapagal Arroyo has ordered the state grains agency to purchase paddy rice from farmers at a higher rate of PHP17 ($0.41) a kilo, Agriculture Secretary Arthur Yap said Wednesday.

State agency National Foods Authority previously bought paddy rice at PHP12 a kilo, which effectively becomes the minimum price. NFA sells rice at a subsidized price of PHP18.25 a kilo.

Yap said Arroyo issued the order in the wake of reports that rice farmers in certain regions aren't getting the benefits of higher prices being paid by commercial traders.

He said, however, NFA will be allowed to raise the subsidized selling price of rice to PHP22-PHP25 a kilo.

Rice weighs heavily in the basket of goods that determine domestic inflation.

In 1995, a shortage in the rice supply sent inflation surging to double-digit rates.

-By Cris Larano, Dow Jones Newswires; 632-848-5051; This e-mail address is being protected from spam bots, you need JavaScript enabled to view it

(END) Dow Jones Newswires