LOS BAÑOS-BASED International Rice Research Institute (IRRI) said it has partnered with molasses trader Tao Commodity Trader Inc. (TCTI) to exclusively sell its high-yield rice varieties that could increase farmers’ yield and income by as much as 20 percent.
In a statement, IRRI said it signed a seven-year limited exclusivity commercial license agreement with TCTI to promote the commercialization and nationwide distribution of its seeds: Mestiso 71, Mestiso 77 and Mestiso 89.
The agreement was formally signed by Dr. Peter Brothers, IRRI chief of staff and representing IRRI’s director general, and Julio Sy Jr., TCTI chief executive officer, on July 30 at the IRRI Headquarters in Los Baños, Laguna.
TCTI is a subsidiary of Tao Corp., one of the Philippines’s top 500 diversified business groups, IRRI said. The three hybrid-rice varieties boast higher yield, superior grain quality, improved pest and disease resistance, resilience to climate change-induced stresses and higher seed production, IRRI added.
“As IRRI strives to achieve food and nutrition security, we always emphasize the importance of building strong partnerships with different organizations to achieve our mission,” Brothers said in the statement released Wednesday.
“We cannot do it alone. Today is a significant day for IRRI as we enter into this new partnership with TCTI, an industry-respected and established group that can help bring some of our innovations to our main clients—the countless farmers and consumers who depend on the rice sector for their food, nutrition and livelihoods,” Brothers added.
Tao Corp., the country’s largest trader of molasses in the country, decided to diversify into the rice seed market with its subsidiary TCTI applying to be part of IRRI’s hybrid-rice development consortium (HRDC).
IRRI said seed companies could be members of the HRDC and be able to access wide, nonexclusive or limited-exclusive access to HRDC’s germ plasm, to “accelerate the development and dissemination of new products to farmers.”
“This historic partnership between Tao Corp. and IRRI could not have come at a more opportune time when our rice farmers are facing very tough times due to challenges on several fronts—from climate change to unfavorable market conditions,” Sy said.
“Through this joint undertaking with IRRI, we could extend much-needed help to our rice farmers. This is a project that Tao Corp. undertakes with much pride and responsibility, and we are extremely honored to be IRRI’s partner in providing rice farmers a chance at a better tomorrow,” Sy added.
Under the agreement, TCTI will fully invest in scaled-up development, production and distribution of seeds, as well as meeting seed sales objectives, for the three rice hybrids, according to IRRI.
TCTI will work with Aski Inc. to provide farmers with training, technologies and financial services to help further spread the use of the selected rice hybrids’ seeds, IRRI added.
Aski Inc. is a leading microfinance company with over 18,000 farmer-clients in the Philippines, according to IRRI.