THE Iloilo Provincial Government has approved the loan applications of 10 cooperatives to help resource-poor farmers suffering from low-buying prices of palay following the passage of the Rice Tariffication Law.

This, in part of the “Mangunguma Sapnayon: Palay Price Support Program” of Governor Arthur Defensor Jr. that aims to stabilize the income of palay farmers through stable support price for their palay produce.

Varying from one to 10 million, the program management committee approved the loan applications of the following cooperatives:

* Pototan Farmers Multipurpose Cooperative in Pototan, Iloilo

* Dingle Multipurpose Cooperative in Dingle, Iloilo

* Southern Iloilo Area Multipurpose Cooperative in Oton, Iloilo

* Sta. Barbara (Facoma) Multipurpose Cooperative in Sta. Barbara, Iloilo

* San Julian Multipurpose Cooperative in Badiangan, Iloilo

* Zarraga Multipurpose Cooperative in Zarraga, Iloilo

* Barotac Nuevo Development Cooperative in Barotac Nuevo, Iloilo

* Kooperatiba Naton Multipurpose Cooperative

* Guintapagin Agrarian Reform Cooperative in Bingawan, Iloilo

* Kabalikat Multipurpose Cooperative in Bingawan, Iloilo

A memorandum of agreement (MOA) between the provincial government and the cooperatives were signed on Monday, October 15, in a ceremony held at the board room of the Governor’s Office.

The loan, which will be used exclusively to buy palay, is payable in three years and has a nominal interest rate of two percent per annum based on principal balance remaining.

The loan amount was determined upon due validation and evaluation of their management capability, financial viability (e.g. assets, share capital, revenue, and equity) and technical capability (e.g. availability of post-harvest machinery).

As agreed, the cooperatives will buy fresh and clean palay produce directly from palay farmers and not from traders or middlemen at a price of P14.00 per kilo or at the prevailing market price, whichever is higher.

Any cooperatives or associations already engaging in palay business trading may also apply for the loan as long as they meet the eligibility criteria stipulated in the loan requirement. (Jezza A. Nepomoceno)