Rice Farmers in Bohol Receive ₱209.3 Million Loan from DBP

Two rice farmer cooperatives in the province of Bohol have been granted ₱209.3 million in credit by the Development Bank of the Philippines (DBP), which may be allocated for working capital, processing, storage, and other logistical needs. The credit was split into two grants of ₱200 million and ₱9.3 million for the Bohol Bayanihan Multi-Purpose Cooperative (BBMPC) and the Bohol Community Multi-Purpose Cooperative (BCMPC), respectively.

For its loan, the BBMPC is expected to utilize the funds for working capital for the procurement, storage, drying, milling, and packaging of palay. Additionally, the cooperative is eyeing to allocate the amount for the acquisition of transportation and equipment, the rehabilitation of its rice processing complex, and re-lending it to small rice farmers enrolled in the Registry System for Basic Sectors in Agriculture.

The BCMPC, on the other hand, will use the loan for the construction of a warehouse, transportation acquisition, and permanent working capital in the selling of palay. DBP executive vice president for development lending Paul Lazaro noted that the grant will enable BBMPC to handle at least 20% of the palay production buyback mechanism previously operated by the local government of Bohol.

Through this collaboration, Bohol will also be able to put more emphasis on the other features of its Advanced Rice Technology (ART) program. This includes the adoption of innovative rice technology, boosting production, and improving the worldwide competitiveness of rice farmers in Bohol.

According to the DBP, the province’s ART program is geared to promote the planting and harvesting of high-yielding rice varieties, both from hybrid and certified seeds. It also serves to increase the income of rice farmers by encouraging the direct purchase of palay at a price higher than market prices. This loan forms part of the state-owned bank’s efforts to increase the productivity and operational efficiency of key food growers.

Source: Manila Times