Philippines: Hunger mitigation program, strong peso soften blow of continuing rise in oil prices

Agriculture Secretary Arthur Yap said today the hunger mitigation program of the government, coupled with the strong peso, has softened the blow of the continuing rise of oil prices in the world market particularly on prices of basic commodities.

Yap made the statement during the taping this afternoon of �The Cabinet Speaks� television program hosted by Press Undersecretary Martin Crisostomo with DZMM radio reporter Ruby Bernardo-Tayag and top rice farmer Jojo Garcia from Nueva Ecija.

�Maganda po ang appreciation ng peso, so kahit na umaakyat ang presyo ng langis naso-soften iyong impact dahil malakas talaga yung peso,� Yap said.

He said that with the continuing appreciation of the peso against the US dollar, the possibility that the exchange rate would hit P40-$1 was not farfetched.

Yap said aggressive government support programs have increased the production of farmers, and ensured the continuous supply of prime commodities such as rice, meats, fish, and vegetables at stable prices.

The DA official said that rice, fish and vegetable prices have been stable, while the existing inventory of chicken in storage facilities is higher compared to that of last year�s.

President Gloria Macapagal-Arroyo has ordered the release of P1 billion for the government�s hunger mitigation program. She also directed the National Food Authority (NFA) to increase its buying price for palay from P10 to P11 per kilo to help the farmers.

Aside from the increased buying price of palay, Garcia said farmers like him can avail of the �buy-back� option within six months if they opt to �re-sell� their harvest at higher prices than the NFA buying price.

The President also ordered the Philippine Amusement and Gaming Corporation (Pagcor) to set aside P100 million palay buying program to ensure that the less fortunate Filipinos will have access to affordable rice during the Christmas season.