The Department of Agriculture, through its attached agency the National Food Authority, is set to launch late this month electronic trading (e-trading) for corn.

Agriculture Secretary Arthur Yap said he has directed the NFA to come up with an e-trading system for corn, which is scheduled to start on November 25, wherein farmers and traders can transact business online, a government press release said.

"Through electronic trading, people can take positions and buy stocks from any NFA warehouse," he said.

Yap said the NFA will be putting up five main withdrawal points for the e-trading of corn – Isabela, Cagayan, Bulacan, General Santos City , Cagayan de Oro City, and in Metro Manila.

Former NFA chief Gregorio Tan, who is now a member of the technical advisory group of the DA, in an exclusive interview, said the scheme will have an open market, which means "no price ceiling."

He said through the e-trading system, corn farmers can deposit their produce in NFA warehouses and post their prices for buyers to see.

Buyers, on the other hand, can also post their preferred prices, he added.

Tan, however, clarified that the NFA will be providing mechanism for the e-trading system for corn such as the inventory and liquidity, and safety nets for both the farmers and traders.

He said the NFA shall also act as guarantor to ensure that farmers will be fully paid by the trader in a done deal.

In turn, Tan said, the grains agency will ask the buyer for a 10-percent margin as advance payment for the commodity it is trading, the press release said.

The NFA also guarantees the quality and quantity of corn in the e-trading scheme, he added.

Tan said the NFA will be paid by a marketing fee, which is yet to be determined, for storing, delivering and linking producers with buyers electronically.

At present, he said, the DA is just "fine-tuning" details of the e-trading system for corn, particularly in the pricing of the commodity.

Tan said the NFA is also planning to introduce to the farmers "SMS system" in the monitoring of corn prices in the market, wherein the agency could send through text the present price of corn to the farmers so they will be able to determine the right price for their produce when trading online.

According to the Bureau of Agricultural Statistics, corn production was forecast to grow around 2.26 percent to 7.09 million metric tons given expansions in harvest area and higher yield.*PNA

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