Taiwan is considering raising the minimum purchase price for rice by at least NT$2 (US$0.07) per kilogram in order to boost rural incomes, the Council of Agriculture said April 25.
“Given the healthy state of the domestic economy and surging food prices worldwide, we believe an upward adjustment in the government’s purchase price is warranted,” said Chen Wen-deh, director-general of the COA Agriculture and Food Agency.
Chen said the cost of growing rice has gone up NT$1.50 per kilogram over the past three years with no corresponding rise in the purchase price. “An increase will guarantee farmers receive a fair return on their hard work.”
COA data indicates that the NT$2 rise will cost an additional NT$400 million per annum. Last year, the government purchased 200,000 tons of grain at an average rate of NT$22.
According to Chen, if the new rate triggers an unreasonable upsurge in retail prices, the COA will release grain from the government reserves to maintain market order.
Sources familiar with the matter said the COA is still working to finalize the proposal for Cabinet review, but expect the measure to take effect in June at the earliest. (JSM)
Write to Meg Chang at meg.chang@mail.gio.gov.tw