Bohol farmers get P209-M DBP loan

State-run Development Bank of the Philippines (DBP) has extended more than P200 million in financing support to rice farmers in Bohol to raise their output.

DBP president and CEO Emmanuel Herbosa said P209.3 million in credit assistance was released to the Bohol Bayanihan Multipurpose Cooperative (BBMPC) and the Bohol Community Multipurpose Cooperative (BCMPC).

The government-owned bank issued bulk of the loan at P200 million to the BBMPC, while the other P9.3 million went to the BCMPC.

According to Herbosa, the BBMPC will use the proceeds of the loan to beef up its working capital for palay procurement, storing, drying, milling and packaging. It will also use the financing to purchase new equipment and transport for its members.

Herbosa said the BBMPC is also deploying a portion of the funding to fix its rice processing complex and set aside a certain amount to extend loans to rice farmers enrolled in the Registry System for Basic Sectors in Agriculture.

DBP executive vice president for development lending Paul Lazaro said the credit granted to the BBMPC would allow it to handle at least 20 percent of the palay production buyback mechanism, a program that used to be managed by the local government units.

On the other hand, Lazaro said the BCMPC would use its loan to build a warehouse, buy transport, as well as increase its working capital, all in the aid of its members.

Lazaro said the financing extended to the BBMPC and BCMPC will allow the local government units in Bohol to redirect its resources to the Advanced Rice Technology (ART) program.

A project of Bohol Governor Arthur Yap, ART seeks to adopt new technologies in rice farming. It wants to enhance the productivity and improve the competitiveness of rice farmers in Bohol.

In general, the project looks to achieve the planting and harvesting of high-quality rice varieties, both from hybrid and certified seeds, that can cash in additional returns for rice farmers. It also promotes the direct purchase of palay at a price above the prevailing market rates to boost the income of agriculture workers.

DBP continues to sustain its credit assistance for agricultural programs to lift the condition of farmers in the countryside and also bolster the food security of the Philippines.

The DBP serves as the fifth largest bank in terms of assets in the country and focuses its credit support mainly to four sectors, including social services and community development.