ILOILO – To help small farmers cope with plummeting rice prices, the Sangguniang Panlalawigan approved a P100-million supplemental budget for a loan program.
There are 7,953 small farmers – those tilling farms less than a hectare wide – in the province.
According to Gov. Arthur Defensr Jr., the loan program is for small farmers’ cooperatives. Twelve have so far been identified.
Only those with good credit standing and track record can avail themselves of the loan, said Defensor, stressing that he wanted public funds spent properly.
The cooperatives must also have drying facilities, he added.
“We want to help small farmers who cannot avail themselves of the rice buying program of the National Food Authority due to the high moisture content of their produce,” said Defensor.
The cooperatives must buy palay (unhusked rice) from small farmers at premium prices.
Rice prices are dropping due to the deluge of imported rice. This, in turn, is being blamed on the Rice Tariffication Law.
The loan ceiling of the small farmers’ cooperatives will determine the amount of loan they could secure.
The maximum loan, however, is P15 million.
There is a two percent interest.
“We could help more if there is no interest but I think we have no choice,” said Defensor, noting that farmers’ cooperatives are private entities. “We are being careful.”
The initially plan was for the loan to be of zero interest.
Defensor thanked the SP for approving unanimously the P100-million supplemental budget yesterday.
The amount will be taken from the unappropriated surplus for calendar year 2018. (With a report from LHC, Capitol News/PN)