|
AGRICULTURE Secretary Arthur Yap is pushing for a
P7-billion microfinance fund focused on rice farmers to
boost production—P4 billion from the government’s
Malampaya gas royalties and P3 billion from the
value-added tax (VAT) on oil windfall revenues.
Yap told
Palace reporters at Quinta Market in Manila, where
President Arroyo conducted a price inspection on Monday,
that the Chief Executive has approved his request to use
the gas royalties and he is awaiting her decision on the
P3 billion, which he said she appears to be “disposed”
to do.
“I have
asked the President, ‘Ma’am, we have to find a way to
bring down funds [to rice farmers] more.’ We have to
liquefy the market, which is why she has agreed on the
Malampaya, P4 billion. I’m asking [for] the P3 billion
of the Katas ng Vat be set aside as a guarantee for the
LandBank to lend that out,” said Yap.
Mrs.
Arroyo later announced her approval of the use of the
P4-billion incremental gas royalties for the program in
her State of the Nation Address.
Yap said rice production is targeted at 17 million metric tons
(MT) this year. “We have already met our target for the
first half, which is more than 7 million MT higher than
last year’s harvest. We are keeping a close watch over
the second half of the year. If there is growth, by how
much; if it will retract, by how much? We are taking a
look at this because of what happened to fertilizer
prices.”
He said
the P7 billion will be a “base fund for microfinance”
and will be made available through the Land Bank of the
Philippines as soon as the Department of Budget and
Management certifies that the funds are in, which could
be by August or September.
“If the
President decides, you don’t have to put the money in
LandBank right away because it’s a guarantee. The
concept of a guarantee is when there is a call on the
guarantee, it will be available. As long as the
government commits to LandBank, LandBank can use its
fund as well,” said Yap.
The
“jitters” caused by the rice crisis during the dry crop
season had prompted rice millers and traders to “outbid
each other,” leading “a lot of them” to buy palay at a
high P22-24 per kilo. The National Food Authority
usually buys palay at P11-P13 a kilo.
“They
could not dispose of their rice because they don’t want
to take a cut. There is now illiquidity in the market.
If the millers and traders do not sell, they cannot
finance the farmers who will plant during the wet
season. And when the wet season crop comes, they’re
going to try to balance their losses [which will] impact
the dry season financing.”
Yap also said that the NFA will “adjust” the rate of injection
of P25 per kilo imported NFA rice release to “make way
for” local rice harvests and not cause rice prices to
fall disadvantaging local farmers.
“For the
first time since 1970, rice prices are retreating during
the lean months [when] rice prices go up. But now it is
retreating. That is because of the NFA injections. The
question is, until when can you make infusions without
affecting production? You have to be careful. It is not
the objective of the DA to cause prices to fall....The
objective is to stabilize prices. No major ups and
downs.”
He said
that increased rice importation is a matter that the DA
is “continually assessing” but this will be done on a
government-to-government basis because if it is allowed
for private business “you would upset the market; you
will help push up international prices to our
detriment.” |
