European Union announces 10-million-euro food grant to Philippines

European UnionManila  - The European Union said Friday that it has approved a 10-million-euro (13.4-million-dollar) grant to support agriculture and improve food security in the Philippines.

The grant was part of a 1-billion-euro fund set up by the EU in December to help 23 countries worst hit by last year's crisis caused by the rising costs of food.

A total of 30 million euros has been earmarked for projects in the Philippines, the EU delegation in the country said in a statement.

The first grant of 10 million euros would "help assure the supply of rice seed and increase rice production," the statement said. Several other projects were expected to be approved in the coming months, it added.

Under the project, about 40,000 metric tons of certified rice seeds are to be provided during the 2009 planting season while more than 50 communal irrigation schemes are to be rehabilitated.

At least 250 irrigators associations would also be given support in post-harvesting activities, marketing and education services, the statement said.

The Philippines was hard-hit by soaring world commodity prices with the price of rice, the country's staple food, rising by more than 40 per cent last year. dpa

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