In a statement, the National Confederation of Irrigators Associations praised Agriculture Secretary Luis Lorenzo and NFA Administrator Arthur Yap for speedily acting on the NCIA’s call for changes in the NFA Farmers as Importers Program (FIP).
An umbrella organization of farmers’ groups across the nation, the NCIA has some 820,000 members and claims a 65 percent coverage of the rice farming sector.
In an interview yesterday over radio station dzMM, Lorenzo said he would call Yap and Butil party-list Rep. Benjamin Cruz and Leyte Rep. Ted Failon together for a constructive dialogue on the legislators’ recommended changes to the FIP.
NCIA national spokesman Silverio Bonto, who also heads the Bicol Region Confederation of Irrigation Associations, lauded Lorenzo for his swift action to the call by farmers’ groups for further improvements to the FIP.
Yap said the program guidelines, which were approved by the Cabinet before he assumed office in October 2002, should be modified to reduce the maximum allocation per group to 500 metric tons from the current 10,000 MT, so that more groups could be given allocations.
FIP is an initiative launched by President Arroyo in her State of the Nation Address (Sona) to give farmers’ groups the opportunity to import the country’s rice requirements.
Farmers’ groups apply for import allocations with the NFA on a first come, first served basis and are referred to the Land Bank of the Philippines, where their applications to open letters of credit (L/Cs) are approved and processed.
NCIA officials said Lorenzo’s announcement proves that the country’s top agriculture officials are sincere in working for the program’s success so that more farmers are given the opportunity to earn additional income as entrepreneurs and traders.
Last Jan. 19, Lorenzo, Yap and NFA chairman Angelito Sarmiento sent a memorandum to Mrs. Arroyo recommending that rice imports should be opened solely to farmers’ groups.
"The next step," Bonto said, "should be the rational discussion of the program so that improvements to allow more small groups to participate (in the FIP) would be introduced."
In a news conference last Friday, the NCIA recommended that LandBank should allow farmers to tap trade financing options, such as open accounts and side draft agreements, rather than have them open L/Cs.