NFA relaxes quality requirements for yellow corn

MANILA, Philippines - The National Food Authority has relaxed some quality specifications for yellow corn, making it easier for farmers to sell their produce to the agency.

It also has a budget of P5.75 billion to buy additional corn.

According to NFA Administrator Jessup P. Navarro, from the previous 97 percent purity requirement for yellow corn grains, the grains agency has reduced the purity requirement to 96 percent.

Additionally, Navarro said the allowable presence of kernels of other colors has been increased to five percent from the previous four percent, while the presence of foreign matters has been adjusted to four percent from the previous three percent.

As for moisture content, Navarro said, the maximum allowable stays at 14 percent.

Similarly, he continued, the allowable damaged kernels also remains at five percent, while the shriveled and immature kernels would be allowed at the maximum of three per cent.

Navarro said the NFA is targeting to buy 12 million bags of yellow corn grains until the end of the year.

The government through the Department of Finance  has authorized an additional stand-by guaranteed credit line  of P5.75 billion for corn buying.

The NFA two weeks ago lowered to P10/ kg its buying price for clean and dry yellow corn grains from the previous P12.30/kg.

However, President Arroyo last December had announced an increase of the corn support/buying price to P13/kg, a price level that was not fully granted to all farmers.

The lower support/buying price for yellow corn, however, includes a possible additional incentive of P0.20 per kg for drying and P0.20 per kg for delivery, for a slightly higher support/buying price of  P10.40 per kg.

For farmer organizations, the NFA grants P0.30 per kg Cooperative Development Incentive Fee (CDIF) on top of the drying and delivery incentives for a total buying price of P10.70/ kg.

The CDIF is for post-harvest facility build up.