PCCI urges more fund sources for agri

MANILA, Philippines - The government must come up with alternative ways to lend to the agricultural sector to make funds more accessible to small farmers, the Philippine Chamber of Commerce and Industry (PCCI) said.

In a statement yesterday, PCCI president Miguel Varela said that the accessibility of financing is needed in order to fully realize the potentials of the agriculture as well as other small and medium enterprises particularly in Mindanao.

“We’re pushing for alternative means so that funds will be more accessible for farmers,” he said in a telephone interview.

Farmers, he said, have cited the difficulty in accessing financing given the stringent rules and requirements imposed by banks such as the need for collateral.

He said that while the agriculture department has a guaranty fund at the state-run Land Bank of the Philippines where farmers could borrow to support production, farm and fishery sector representatives still find it hard to avail of loans as bank requirements are too stringent to comply with.

He said that based on discussions during a regular meeting of the PCCI with the Mindanao Development Authority (MinDA) and the United States Agency for International Development-Growth with Equity in Mindanao Program (USAID-GEM) held earlier this month, it was proposed by MinDA secretary Luwalhati Antonino, that funds be distributed using the same method as the conditional cash transfer (CCT) program with repayment system.