THE Development Bank of the Philippines (DBP) is open to availing of government funds manged by Maharlika Investment Corp. (MIC) to support the newly-launched Agri Puhunan at Pantawid (APP) project. A collaboration between the DBP and the Department of Agriculture (DA), the project aims to assist farmers via the provision of low-cost credit. "I will seek for an appointment with the people from Maharlika and ask if they might want to join," DBP Director Roberto Antonio told reporters on Wednesday. "I'm willing to meet with anyone willing to help and help us expand the program." Antonio explained that a substantial investment could provide significant benefits for farmers. If the government can mobilize P60 billion, he said, the "multiplier effect" on the country's economy could also be immense. The MIC has identified the agriculture sector as one of its priority sectors, to align with government efforts to boost the farming industry. The APP, which was launched on September 13, seeks to address the financial challenges of farmers during planting season. The project stipulates that farmers will receive an Intervention Monitoring Card (IMC) that allows them to obtain planting necessities, including cash, directly from accredited merchants. Farmers will also receive a monthly allowance of P8,000 for four months. Antonio pointed out that the cash assistance would spare the farmers from resorting to usurious loans that charge 15- to 20-percent monthly interest. In turn, farmers are required to sell 5 tons of their harvest to the National Food Authority (NFA) at a guaranteed price of P21 per kilo, with potential earnings of P105,000 per hectare. With excess produce, total earnings could reach P119,000 per hectare. To prevent the misuse of the IMC, Antonio said the farmers' physical presence would be required for transactions. "They can't pawn [the card]," Antonio stressed, adding that only the cardholder can avail of its benefits. Planters Products Inc., an agency under the DA, will oversee and monitor the program daily. Field personnel will conduct regular visits to ensure that farmers are actively cultivating their crops. In a related development, Agriculture Secretary Francisco Tiu Laurel Jr. is seeking more foreign funding to fill investment gaps in agri-industry. Tiu Laurel admitted the government had limited resources to undertake major projects such as seaports, roads and bridges, and irrigation that were needed to modernize agriculture and improve the income of farmers and fishermen. This is why the DA is "working at finding other funding sources from official development partners to implement necessary and relevant interventions needed to address critical sectoral and institutional challenges and investment gaps." The DA chief also pointed at efforts to expand the cold chain storage network to address issues of overproduction and postharvest losses, particularly in high-value crops. "In addition, we will be building food terminals along with cold storage facilities that will also be strategically established regionally. These facilities are very crucial to address the food logistical cold chain issues," Tiu Laurel said.
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