The Iloilo Provincial Government is eyeing to loan P50 million to farmers’ cooperatives for its palay procurement program under the “Mangunguma Sapnayon: Palay Price Support Program” this year.

Cooperative development specialist Teresita Tabares said the Provincial Cooperative Development Office under lawyer Arturo Cangrejo has requested a budget for the program, which they hoped to be approved by the Sangguniang Panlalawigan in time for the harvest of the first cropping in September.

“Atty. Cangrejo requested P50 million based on the consultation with cooperatives that are interested and qualified to loan,” she said, adding they have two potential cooperatives eyeing a P15 million loan each and another one for P10 million.

The loan is payable in three years with an interest rate of 2 percent per annum in a diminishing balance.

Based on the guidelines of the provincial government, they can purchase fresh and clean palay at P14 per kilogram.

In a separate interview, Iloilo Governor Arthur Defensor Jr. said that in 2019, the Department of Agriculture sought the support of local chief executives in the procurement program of the National Food Authority (NFA).

The common method was for local government units to add to the existing procurement price of the NFA at P19 per kilo.

However, Iloilo came up with its program.

“We have a program targeting small farmers who cannot access NFA prices. We have a program that we loan money to accredited coops for them to buy palay from small farmers at premium prices,” Defensor said.

Tabares said nine of the 11 cooperatives that availed of the loan when the program was launched in 2019 have already fully paid and two have already renewed their loan.

Only those with a fully paid account is allowed to renew, she said.

Those that availed of the loan are the Aganan River Federation of Irrigators Association Inc, Southern Iloilo Area Multipurpose Cooperative (MPC), Barotac Nuevo Development Cooperative, Dingle MPC, Guintapagin Agrarian Reform Cooperative, Kabalikat MPC, Kooperatiba Naton Multipurpose, Pototan MPC, San Julian MPC Badiangan, Sta. Barbara Facoma MPC, and Zarraga MPC.Perla Lena/PNA