President Gloria Macapagal-Arroyo has approved the allocation of P1.68-billion as subsidy to the farming sector for the acquisition and distribution of certified palay seeds nationwide, Agriculture Secretary Arthur Yap said.
According to Yap, the amount will be used to buy some 1.4 million sacks of certified seeds to be planted in 1.4 million hectares of irrigated and rain-fed ricelands all over the country during the 2008-2009 cropping season.
In addition, the Land Bank of the Philippines (LBP) will provide P7 billion in micro-finance loans which farmer-beneficiaries could use to improve rice and crop production, he said.
Each sack of certified palay seeds under the subsidy program can generate up to 120 sacks of palay or 60 sacks of milled rice.
Yap added that in compliance with the President’s directive, the DA has also come up with a production incentives for farmers who sell their produce to the National Food Authority (NFA).
Under the incentives program, farmers who can supply 50 sacks or up to 500,000 metric tons of rice to the NFA will be given P1,800 (per 50 sacks) as rebate, which the farmers can use to purchase fertilizers and other farm needs.
The funding will be sourced from revenue collections, particularly the Expanded Value Tax (EVAT).
The subsidies are part of the DA’s mission of helping the country attain rice self-sufficiency by 2013, he added. (PIA/Bohol)
