Corn growers score trading

MANILA, Philippines - The Department of Agriculture’s plan to allow the National Food Authority (NFA) to start physical commodities trading of corn by the third quarter of this year is “dangerous,” corn growers warned.

In a talk with reporters, Philippine Maize Federation (Philmaize) chairman emeritus Roderico Bioco pointed out that at this time, there is not enough post-harvest and storage facilities, as well as bulk handling infrastructure, to support the planned corn trading.

He said due to the lack of adequate post-harvest infrastructure, the quality of the dried corn for trading cannot be assured.

Likewise, the lack of adequate and proper storage and bulk handling facilities cannot ensure that the corn products do not rot, he cited.

He said flat storage is not ideal for corn, whose ideal storage is by bulk storage and handling facilities which , unfortunately, is inadequate at this time,” Bioco added.

Construction of adequate post-harvest and storage facilities, would cost around P15 billion and take at least three to five years to put up, he pointed out.

With an annual corn production of 300,000 metric tons, Bioco estimates that only about 30 percent of the local corn production could even be actually traded based on the availability of just 10 percent of the required facilities.

Thus, he warned “it is dangerous to announce that we have the ability to do it and then not be able to implement it. It will just create a negative impression again.”

Agriculture Secretary Arthur C. Yap announced last week that the NFA would go into physical commodities trading, initially of corn, as a way of helping provide incentives for corn farmers to increase their output.

Yap said the DA and the Philippine Stock Exchange are in discussions on how to implement commodities trading through the PSE.

Initially, Yap said the commodities trading would be limited to physical trading.

The availability of some 300 warehouses of the NFA would ensure the physical delivery of the commodity.