SINGAPORE, Sept. 21 (Reuters) - After approving genetically modified corn for commercial planting, the Philippines eyeing Chinese hybrid corn to self-sufficiency and shut the door on imports of the grain within two years.

Philippine Agriculture Secretary Arthur Yap told Reuters that varieties of high-yielding Chinese corn were being tested at farms and the government was keen to encourage private sector investment in corn production.

"A lot of Chinese hybrid corn seed supplies are coming to the Philippines to offer their technology," Yap said. "We are trying to expand the area under corn."

The Philippines is expected to produce about 5.2 - 5.5 million tones of corn this year, up sharply from last year's 4.6 million tones, thanks to favorable weather and an increase in acreage.

Domestic consumption, however, tops 6 million tones.

The Southeast Asian nation plants two corn crops a year - one in May and the other in October. Imports are regulated by the government, with average duties ranging from 35 percent to 50 percent.

"We are aiming not to import corn in two years' time," Yap said. "Hopefully, we will see a lot of private sector investments coming up in corn production."

The country's average corn yield per hectare this year was estimated at 2.2 tonnes, up from 1.92 tonnes last year. Some Chinese hybrid varieties, which are not genetically modified, can yield more than 5 tonnes per hectare, government officials say.

In a country where nearly 73 percent of the poor live in rural areas, corn production provides livelihood to over two million farming families.

In December 2002, the Agriculture Department's Bureau of Plant Industry approved Monsanto Co.'s application for limited commercialization of Bt corn, an insect-resistant variety of corn also called the YieldGard Corn Borer.

Since then the government has been stepping up efforts to boost biotech corn production despite opposition from non-governmental organizations. Yap said there had been no negative feedback, except protests from the NGOs.

"The NGOs claim that biotech corn has effects on health but as of now, we don't have any data to back that up," Yap said.

"We are expanding in the way we think is the best, taking into consideration what is good for our stakeholders and consumers."

The Asiatic corn borer is the leading destroyer of corn crops in the Philippines, causing losses of up to 80 percent in yields, Yap said.

But Bt corn keeps these pests at bay, and at the same time helps yields to rise by an average of 40 percent. It is also lowers production costs by sharply reducing the need for pesticides.