State-run Development Bank of the Philippines (DBP) led by bankero Emmanuel Herbosa has approved P209.3 million in credit assistance to two rice farmer cooperatives in Bohol as part of the bank’s continuing support to the government’s program to boost productivity and operational efficiency of growers of the essential food staple.
The government financial institution extended P200 million to the Bohol Bayanihan Multi-Purpose Cooperative (BBMPC) and P9.3 million to the Bohol Community Multi-Purpose Cooperative (BCMPC), primarily for working capital as well as processing, storage, and other logistical requirements.
“DBP’s support complements current initiatives of the local government of Bohol led by Governor Arthur Yap, such as its Advanced Rice Technology program, to further uplift the socio-economic condition of rice farmers in the province while boosting food security,” the bankero said.
DBP is the fifth largest bank in the country in terms of assets and provides credit support to four strategic sectors of the economy – infrastructure and logistics; micro, small and medium enterprises; the environment; and social services and community development.
Under the agreement, loan proceeds would be used by BBMPC for working capital for palay procurement, storing, drying, milling and packaging; acquisition of transport and equipment; repair of rice processing complex; and for relending to small rice farmers enrolled in the Registry System for Basic Sectors in Agriculture (RSBSA).
DBP executive vice president for development lending Paul Lazaro said the loan to BBMPC would enable the cooperative to handle at least 20 percent palay production buy-back mechanism, which was initially handled by the local government unit (LGU) of Bohol.
On the other hand, the loan extended to BCMPC would be used for the construction of a warehouse; transport acquisition and permanent working capital in the selling of milled rice.
The partnership with BBMPC and BCMPC would enable LGU Bohol to focus on other components of its ART program including the adoption of new rice technologies to further increase productivity and to enhance the global competitiveness of Bohol rice farmers.
‘’DBP vows to continue to be an ally of the agriculture sector in providing the necessary financing to support programs that provide better and greater benefits to the farming community,” Lazaro said.