Under increasing pressure from critical government watch dogs, the Japanese government said it is likely to scrap the KR II program or the Japan Food Aid Program , saying the Philippine government has not shown that the annual grant provided to the Philippines has increased productivity in the agriculture sector.
Last year, Japan suspended its assistance to the Philippines after non-government organizations in Japan successfully lobbied to have the Philippines delisted from the list of countries that are extended aid under KR II.
"The NGOs said their government should withdraw the assistance since recipient countries such as the Philippines have not really made good use of it to eliminate hunger, that’s what the NGOs in Japan are saying" pointed out Philippine agriculture attaché to Japan Joseph Sison.
The NGOs, according to Sison, are highly critical of the KR II because throughout the years of its implementation, the commodity grant has only benefited preferred trading companies the Japanese government has appointed to bring the commodity to the Philippines.
Under the KR II program, Japan extends farm inputs to the Philippines in the form of fertilizers, agricultural chemicals and agricultural machinery.
These farm inputs are then monetized by the Philippine government through an open bidding among interested companies and cooperatives.
The proceeds of the sale are then remitted to the Bureau of Treasury and earmarked for programs and projects related to agriculture and fisheries and social development.
The Philippines has been receiving the grant since 1977. In 2002, the government received an $11-million worth of commodity grant in the form of 97,000 metric tons of fertilizer (ammonium sulphate).
"The NGOs were saying that it is unfair for Japanese citizens to be financing this program when no significant progress has been made in terms of increasing agricultural productivity," said Sison.
The KR II’s primary goal is to help developing recipient countries to achieve self-sufficiency in their major staples. In the case of the Philippines, these would be rice and corn.
But over the years, the government failed to increase production that would be adequate to stop rice importation.