Most Filipino rice farmers tend small plots and rely on rainfall, leaving the land idle in the dry season and therefore curtailing their productivity. --PHOTO: REUTERS
MANILA - THE World Bank said on Thursday it had approved a US$70 million (S$102 million) farming loan for the Philippines aimed at boosting output in the world's largest rice importer.
MANILA was forced to import 2.3 million tonnes of rice last year, even as prices spiked to near 30-year highs, to feed its rapidly growing population of 90 million people.
After rising to US$1,080 a tonne in April 2008, rice prices slid to around US$575 late last year, partly due to swollen inventories as stocks were rebuilt from the new crops last year.
The 15-year 'adaptable programme loan' will go towards expanding irrigation in the country to increase crop yield, the Bank's country office said in a statement.
The World Bank loan is the first of three tranches totalling US$290.36 million to help pay for the US$413.59 million project. The rest will be paid for by the government.
The terms of the loan were not disclosed.
Most Filipino rice farmers tend small plots and rely on rainfall, leaving the land idle in the dry season and therefore curtailing their productivity, according to agricultural experts here.
The mountainous country has largely failed to produce enough of the cereal and has been one of the world's largest importers.
The project 'will contribute significantly to the government's priority objective of increasing agricultural productivity and enhancing food security', Health Secretary Arthur Yap said in the statement. -- AFP
