Agriculture Secretary Luis Lorenzo Jr., concurrent chairman of NFA, approved the proposal of NFA Administrator Arthur T. Yap who is concurrent DA Undersecretary for Luzon operations.
Lorenzo said tapping the CDIF for farm input procurement should help thousands of farmers cope with high price of fertilizers.
"A number of our farmers have complained that the cost of palay production is getting higher due to increasing cost of fertilizers, so we thought of using a portion of the CDIF to buy fertilizers wholesale at a cheaper price so we could retail them to our farmers at affordable levels," he said.
As a form of assistance to farmer cooperatives, NFA is providing incentives to farmers who sell their produce to the food agency. The incentive is in the form of a rebate equivalent to 25 centavos for every kilogram of palay sold to the NFA. The amount is credited to the cooperative or association.
The monetary incentive is intended to function as a revolving fund for the acquisition or rental of post-harvest facilities and production facilities, purchase of production inputs, investment equity and as a subsidy for training expenses of farmers groups, he explained.
Yap said that as of February this year, the combined CDIF balances of 2,824 farmers organizations that could be used for buy fertilizers in bulk had reached P95 million.
"Through the CDIF, we can procure through public bidding farmers‚ fertilizer requirements from importers and suppliers at volume discounts, thereby making fertilizers available to farmers at affordable prices," Yap said.