The World Bank is keen on providing technical and loan assistance to improve food production and supply management in the Philippines, the Department of Finance said.

The finance department said programs that would help improve agriculture production were now necessary, given the supply problems that result in higher prices of commodities.

“Improving food production is definitely a crucial issue for us [Philippines] and for other countries in the region,” Finance Undersecretary Roberto Tan told reporters.

Tan said the Department of Agriculture (DA) and the National Food Authority (NFA) would be the implementing agencies for the proposed program on improving food production.

He said the World Bank could provide experts who could help train Filipino farmers on improving productivity, and could lend the amount needed for the program.

The food supply problem was largely blamed for the steeper rise in consumer prices.

In March, year-on-year inflation reached 6.4 percent, the highest since August 2006, accelerating from 5.4 percent in February and preventing the government from keeping to its target of limiting the rise in consumer prices to 3.0-5.0 percent.

Authorities said some unscrupulous traders were taking advantage of the tightening supply of rice. Some of them have been repackaging NFA rice and selling them at commercial prices, while others were hoarding supply to further jack up prices.

The Department of Finance also said the government could reduce tariff on imported rice or allow the NFA to import more rice even at higher cost.

World Bank country director Bert Hofman said at the Philippine Development Forum last month that the bank would welcome proposals to help the government in food-related programs.

Hofman said the World Bank was interested in assisting the government in its plan to provide food subsidies to the poorest of the poor.

The government is looking at providing food subsidies to members of poor families who will visit healthcare centers and will attend school. The program, however, requires a substantial budget.

Hofman said that in pursuing the program the World Bank would need to be assured that those who would benefit are really those in need.

Hofman said programs for the poorest of the poor were necessary so that the benefits of an improving economy would be felt by every one.

Direct subsidies would be one way of allowing the fruits of a developing economy to trickle down to the masses.