Capitol set to start buying palay from farmers
WITH P500-M CREDIT LINE
TO start its planned palay-buying operations for the benefit of farmers, the provincial government got its go-signal to open a P500-million credit line with the Land Bank of the Philippines (LBP) for the purpose.
During its virtual session last February 22, the Sangguniang Panlalawigan (SP) authorized Gov. Amado Espino III to sign the loan agreement with LBP.
Third District Board Member Angel Baniqued Jr. said the amount will be used (1) for palay buying operation, (2) acquisition of farm machineries and equipment and (3) for other rice related activities.
“This is just a credit line, not actually a loan, which can be availed of as the need arises,” Baniqued said, responding to the query of Fourth District Board Member Jeremy Agerico Rosario.
He said the province can maximize its full use of the P500 million credit or use only P100 million or P200 million depending on the province’s needs to meet its commitments to the farmers.
Baniqued explained that while the credit line can be accessed to provide subsidy to the farmers, particularly if their palay suffers a drastic drop in selling price, it can also be used to setup warehouses to store purchased palay and rice mills to process the commodity.
The P500-million credit line offered by the LBP is the third credit line availed of by Pangasinan. The latest was applied for as a stand by fund to respond to the challenge posed by COVID-19 last year.
Asked by Second District Board Member Von Mark Mendoza if the province will still buy palay when the price in the market becomes competitive, Baniqued replied that buying palay by the provincial government will no longer be necessary in such a situation.
The plan to buy palay was decided by Gov. Amado Espino III on learning of the rice farmers plight who were adverse by the rice tariffication policy of the national government. The palay buying is in line with the Palay alay sa Magsasaka sa Lalawigan of the Department of Agriculture. (Leonardo Micua)
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