(Note: This private-to-private-plus-farmers engagement was signed and sealed in April 2019 but later abandoned when I resigned from the DA. This is a sustainable program because farmers will pay back as against the fertilizer dole-out using government funds. This project should be revisited for the sake of the Filipino farmers.)
Filipino rice farmers will soon have access to low-cost fertilizer on credit and this program will not even entail government funds.
In one of the major accomplishments of the Department of Agriculture following a trip to Russia two weeks ago, a Dubai-based Russian-owned company, Vigorous Alliance, has signed a fertilizer supply agreement with Planters Products, Inc., a corporation supervised by the DA.
Under the agreement signed in Manila Thursday, Vigorous Alliance will supply fertilizers needed by Filipino rice farmers every planting season amounting to about P30-B.
The fertilizer will be loaned out by PPI to rice farmers at the start of the planting season payable after harvest.
The PPI is a private corporation whose shares are owned by the Filipino farmers and is under the administrative supervision of the DA.
Vigorous Alliance Chief Executive Officer Merdan Gurbanov and his associate Lev Dengov flew in Monday for a series of extensive negotiations with PPI.
The DA Legal Service assisted in the formulation of the Memorandum of Agreement between Vigorous Alliance and PPI.
Gurbanov signed on behalf of Vigorous Alliance while PPI President Rodel Mañara signed for the Philippine fertilizer company.
The fertilizer-on-credit program of PPI is in compliance with the directive of President Rody Duterte to provide farmers with fertilizer.
Since there is no available government funds for the program this year, the DA worked on the arrangement between Vigorous Alliance and PPI.
Beneficiaries of the program include members of the Irrigators’ Associations, the Small Water Impounding Systems Association, Agrarian Reform Beneficiaries Organization and individual rice farmers.
The fertilizer loaning will be without interest or service fees and the price will be lower than the prevailing market price.
All beneficiaries of the fertilizer loaning program will be covered by the Philippine Crop Insurance Corp.
The fertlizer loan will start October for the dry season planting.
The forging of this huge private-to-private business engagement was made possible with the support of the Department of Agriculture and the Department of Foreign Affairs represented by Ambassador Carlos D. Sorreta in Moscow who facilitated the meetings.
(Photos by Mayette Tudlas)
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