Thursday, August 07, 2008

Entrepreneurial Farmer


Ambrosio R. Villorente

The Government Needs To Develop
Highly Productive Farmers

Agriculture Secretary Arthur Yap last week announced the government might spend as much as P30 billion in 2008 to subsidize rice. This rice is now sold at P18.25 per kilo in the market. In addition to the money used in the importation of rice from foreign countries, about P18 billion in losses is expected in the distribution activities of the National Food Authority (NFA).
The government allocated P16 billion to NFA to cover direct losses from the resale of rice amounting to P12 billion. According to Sec. Yap, NFA increased its marketing participation to 59 percent.
This means 59 percent in rice trading is handled by the government and the 41 percent by the private sector. In 2007, the government allocated P16 billion in subsidies for the NFA. Part of it was used to cover the direct losses from the resale of the rice amounting to P12 billion.
The 59 percent market coverage means NFA gets 59 percent or more than one half (1/2) of the rice requirement in marketing. It also means 59 percent of rice being traded in the Philippine market comes from foreign rice farmers whose products are marketed, in their behalf, by NFA, a government agency which buys expensive rice from abroad and sells at losses in the Philippines.
It appears that the government is subsidizing both foreign farmers and Filipino consumers. This is only happening in the Philippines, which if allowed to continue, will discourage Filipino farmers to go on producing. That P30 billion if used in the construction of irrigation system, used in the procurement and construction of post harvest facilities for rice will enable the Filipino farmers to produce even more of the volume of rice the government is importing annually at less cost. They may even produce more to transform the Philippines from rice importing to rice exporting country.
The NFA is established to stabilize both supply of and price of rice. However, so far, NFA and the Department of Agriculture are stabilizing supply by importation and stabilizing price by selling imported rice at price even much lower of the import cost, thereby incurring huge losses. The government through the DA should be creative and develop Filipino farmers more productive by providing them with production tools, materials like water and market for their products which quality is globally competitive.
Summer Jobs For Students
During a recent meeting of the Aklan Provincial Disaster Coordinating Council, Dir. Aida Estabillo of DOLE disclosed that summer jobs for students are specifically designed for the private sector. However, in the Province of Aklan most of the summer jobs are made available to students by the LGU’s. However, there are more gray areas, the DOLE and the provincial in charge of the project must iron out.
First, the allocation per municipality is not disclosed. Mayor of Balete has never implemented the summer job; there is a need to explain why;
Second, the selection process is kept tightly. What is disclosed was the names of those who are selected; their accomplishment is never reported; what is reported is the date when pay checks are available;
Third, compensation payment is always delayed. Since the Department of Labor and Employment requires guarantee of 60 percent of the wages by the employee from the employer and the 40 percent by the DOLE, why the delay? Just asking for the public interest.
Fourth, since Dir. Estabillo stressed this program is designed for the private sector, there is a need for more public information to allow private sector participation.
Rehabilitation of Kalibo
Mayor Raymar A. Rebaldo deserves the commendation for his initiative in the formation of a Rehabilitation Committee to draw plan of action in the restoration and improvement of the Municipality of Kalibo. Mayor Rebaldo issued last week Executive Order No. 09 that will draw plan of action for approval and implementation in the restoration of Kalibo.
During the initial hearing, some of the matters discussed were the improvement of drainage, restoration of creeks to allow excess water to drain and to demolish illegal structures. Initial discussion dealt on the provision of water and electricity to the houses constructed devoid of building permits. It was also discussed the process of relocation of squatters.
This column humbly recommends the inclusion in the demolition of hanky panky shops at the back of the Saint John the Baptist Cathedral and by the side of Aklan Catholic College building. These portions are parts of the road which are “beyond the commerce of man”.
That portion maybe converted into pay parking. Their relocation to another suitable place will highly improve sanitation and hastened marketing in the Shopping Center and its vicinity. Also, sidewalks in Poblacion, Kalibo must be cleared of illegal signs like “for customer only”, commercial display, vulcanizing shops and others. This is appropriate time to restore the use of roads and sidewalks to motorists and pedestrians. /MP

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