Farmers group backs Yap move to junk subsidies

A large Northern Luzon-based farmers group hailed the recent move by Agriculture Secretary Arthur Yap to scrap subsidy schemes in the agriculture sector and channel instead the resources of government to the development of agricultural infrastructure.

The North Luzon-based West Tanat Multipurpose Cooperative (WTMC) said Yap’s move "would free up valuable government financial resources for vital infrastructure and would stop massive waste of public funds due to questionable subsidy schemes."

WTMC spokesperson Melany Aquino urged Yap to give priority "to the immediate review and halt of the subsidy scheme under the hybrid rice commercialization program (HRCP). Aquino said the subsidy scheme "has not proven to be beneficial to farmers."

The WTMC urged the Department of Agriculture (DA) to look into reports that "the use of hybrid rice seeds…was proven to be less profitable compared with regular varieties since farmers have to spend more for inputs and labor."

Aquino cited a report by the Southeast Asian Regional Institute for Community Empowerment (SEARICE) stating that some P1.6 billion has been allocated by the DA for the HRCP this year and another P2.5 billion earmarked for 2007.

The government allocated P1.2 billion for the program in 2004 and P780 million last year.

It appears, therefore, that the billions used to subsidize the seedling supplier has not benefited the program nor the rice farming sector, Aquino pointed out.

The subsidy scheme also came under fire from international research firm Bayer Cropscience, Inc. which said the subsidy to the preferred supplier has resulted in "price distortion and removed the level playing field that should have encouraged competing seed suppliers."