Agriculture chief in favor of eliminating rice price subsidy

Agriculture Secretary Arthur Yap said that he is in favor of letting the price of rice sold by the government to reflect current costs in the world market, which have reached a record high.

In an interview, Yap said Congress must decide soon whether the National Food Authority (NFA) will continue its role to sell the grain at lower than market rates or to ensure rice self-sufficiency.

"If we want our rice farmers to make money, we have to think long-term. We have to let the prices of our rice to reflect the global market. But that's just my personal observation," Yap said.

The NFA currently is selling its cheapest rice at P18.25 a kilo and P25 a kilo to compete with commercial grain varieties. Commercial rice is being sold at P28 to P35 a kilo.