(Xinhua)
Updated: 2008-03-24 11:35

MANILA - The Philippine government is mulling to raise the tax expenditure subsidy to its food agency as a latest measure to mitigate a rice supply shortage and to cushion soaring grain prices, local media reported Monday.

According to national television network GMA News, Finance Secretary Magarito Teves said the government prefers a rise in tax expenditure subsidy, currently pegged at 12.3 billion pesos (300 million US dollars), to the deduction of import tariffs in addressing the food supply issue.

But Teves said it is only after his meeting with the country's key economic officials will it come clear about how much more is the government planning to increase on tax-expenditure subsidy.

The National Food Authority had earlier applied for subsidy hike to fulfill its mandate of importing grains to ensure the country's rice sufficiency.

The Philippines, one of Asia's major rice consumers, secures roughly 10 percent of its rice demand from overseas. But as the region's rice producers Thailand and Vietnam are cutting back grain exports, the Philippines, among other large rice importer countries, has to face a serious supply shortage in the coming months.

The government has already purchased 1.2 million rice from foreign countries this year, about 68 percent of the year's import quota of 1.8 million, and a price of 500 US dollars per metric ton, which is almost twice the price in usual years.

Philippine President Gloria Macapagal-Arroyo has cautioned the public of a steep rice price hike last week and called for the rice-crazing Filipinos to moderate their rice consumption, especially to avoid a habitual waste of grains among the middle class.

Fast-food chains have also been ordered to reduce by half the portion of rice to go with any meal.

Critics have said if the government failed to address the issue in time, the food crisis will definitely spin off to the political arena and add fuel to the growing public dissatisfaction against the scandals-dogged administration.