S. Cotabato beefs up NFA’s corn procurement with P4-M fund

By Danilo E. Doguiles

Thursday 28th of June 2012

KORONADAL CITY, June 28 (PIA) -- The provincial government of South Cotabato will inject P4 million into the procurement budget of the National Food Authority -South Cotabato for a program aimed to safeguard corn farmers from losses due to low buying price of their produce.

The program dubbed Corn Marketing Assistance Program for Industry Producers , Users and Local Government Units aims to stabilize the price of corn in the province especially during the peak of the harvest season that begins this month, Provincial Agriculturist Reynaldo Legaste said.

On Monday, the Sangguniang Panlalawigan (SP) approved a resolution re-aligning P4 million from the special project fund to the program.

Early this month, Gov. Arthur Y. Pingoy Jr., incorporated the same amount in his proposed second supplemental budget but the province’s finance department reported that that the identified source of fund has been spent on other expenditures, which led the SP to defer its deliberation until a source of fund has been determined.

“The funds will be used by provincial office of NFA to buy corn stocks at a price higher than the prevailing gate price being offered by commercial traders,” Legaste said.

Results of their monitoring indicate that buying price offered traders has remained low and has been fluctuating at around P12 to P13 per kilo, which he said surely leaves the farmer at the losing end.

“In the event that the support price of NFA levels with or gets lower that the prevailing market price, the provincial government comes in with incentives,” he said.

The program, the official explained is patterned after the Palay Assistance for Legislators and Local Governments Units (PALLGU) program.

Of the P4 million allocation, P2 million will be utilized to purchase corn produce from walk-in farmers while the remaining P2 million will be set aside for the produce of farmers who were recipients of farm machineries granted by the Department of Agriculture.

Like the PALLGU program, Legaste said, the provincial government will offer a subsidy of additional P2.50 per kilo to local corn farmers on top of the prevailing buying price of P13 per kilo.

“The P15.50 per kilo buying price is very reasonable considering the increases in farm inputs and other production materials,” he said.

Board Member Jose Madanguit, chairman of the committee on appropriations, said they approved the allocation of the said amount considering that “this would be of great help to the local corn farmers.”

He, however, pointed out that they have yet to invite the management of NFA-South Cotabato and Legaste for deliberation regarding the program before they will finally allow Gov. Pingoy to enter into a memorandum of agreement with the government grains procurement agency. (DEDoguiles/PIA 12)