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The Division of Agriculture (DA) has allotted P85 million in grants to assist onion farmers cooperatives and associations (FCAs) address the plunge of costs of the commodity as a consequence of oversupply.
The DA issued Memorandum Round (MC) 14 that outlined the rules for the implementation of the grant program titled Enhanced Kadiwa: Sagip Sibuyas Undertaking.
The DA defined that the venture seeks to “tackle the urgent wants” of onion farmers as a consequence of “overproduction” that resulted within the decline in farm-gate costs.
Below this system, the beneficiaries of the monetary grant shall be FCAs and their respective farmer-members within the areas of Central Luzon, and Mimaropa.
Eligible FCAs might obtain a most grant quantity of P5 million, in keeping with the DA.
“An eligible FCA shall use the monetary grant for buying and selling capital to cowl all or mixture of the next prices: procurement price of onions purchased straight from farmers; attendant direct prices in hauling and supply to markets and/or chilly storage amenities; and chilly storage rental charges,” the doc learn.
Based mostly on the DA’s funding allocation, a complete of 9 FCA beneficiaries in Central Luzon might be chosen, whereas 8 FCA beneficiaries in Mimaropa might be accepted below the grant program for a complete price of P85 million.
The DA mentioned it will supply the P85-million venture funding from its P250-million domestically funded initiatives for the implementation of the Kadiwa ni Ani at Kita program.
“The DA via the RFO will straight switch/launch the grant funds to eligible FCAs,” it added.
beneficiaries should be duly registered with the suitable authorities companies corresponding to Securities and Alternate Fee, Cooperatives Growth Authority, amongst others.
The FCAs should even be composed of small agricultural producers, farmers, farmworkers and agrarian reform beneficiaries.
The DA mentioned FCA beneficiaries should purchase all of the onions from their farmer-members or farmers normally at a farm-gate ground worth set by the division’s Regional Subject Workplace (RFO). The farm-gate ground worth might be based mostly on precise manufacturing price of the onion farmers within the two areas.
“The onions purchased by the FCAs shall then be marketed in meals markets or to consumers, or saved in chilly storage amenities whereas ready for higher costs,” it mentioned.
“A portion of the full onions purchased can also be utilized by the FCAs in extending help to indigents via ‘group pantries’ or comparable actions the place onions might be or bought at discounted costs,” it added.
The DA mentioned FCAs that beforehand availed of a grant below the Enhanced Kadiwa Monetary Grant Program should still avail of the grant below the Sagip Sibuyas venture supplied that they had been in a position to totally liquidate their earlier grants and obtained passable analysis from the RFOs.
Earlier this month, some onion farmers in Mindoro had been pressured to desert or promote their produce at a loss as worth of the commodity fell to P12 per kilogram to P15 per kilogram, which was beneath the breakeven price of P18 per kilogram.
The typical worth of onions final 12 months was at P42 per kilogram, in keeping with DA. The decline in farm-gate costs was a results of onion oversupply as a consequence of larger output pushed by new gamers within the trade, the DA added.
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