Land Bank of the Philippines (LandBank) cited its nearly three-decade support to the Pangi Multi Purpose Co-operative (Pamulco) for the growth from a four-employee co-op in Maitum, Sarangani Province, in 1991.
“Pamulco began with only P25,000 on hand,” a statement by LandBank said. “Today, operating mainly in Barangay Pangi in Maitum, it has 37 employees on the regular payroll, with 809 total members. It has financed a collective estimate of around 500 hectares for palay and 280 hectares for corn.”
“This is on top of its regular agri-trading and consumer store operations that cater to its farmer-members and general public,” the statement said. “All these endeavors came to fruition with the financing it started to avail from LandBank that same year.”
LandBank claims that through its “rediscounting line, Pamulco was able to bring interest rates for members’ loans down to 12 percent per annum.”
“The bank’s low interest rates for this type of credit
facility are contingent upon financial conduits, such as rural banks and
cooperatives, like Pamulco, to pass on the same beneficial low interest rates
to its eligible borrower members with convenient repayment schedules,” the bank
said. “At only 1 percent per month, farmers can easily see the glaring contrast
to seeking loans from loan sharks and some local traders who charge 20 percent
interest for the same period. Additionally, the co-op’s income is given back to
farmer members in the form of annual dividends and
patronage refunds.”
According to the bank, the co-operative was also able to purchase hauling trucks and upgrade its rice mill that can now process 60 bags an hour, a step up from the 20 bags to 25 bags its old machinery used to churn out. LandBank said that last year, Pamulco was able to purchase palay worth P52.42 million, most of which came from Lambayong, Sultan Kudarat.
“The co-op also took care of the processing and other post-harvest requirements to market the farmers’ rice,” LandBank said. “The trucks kept raw inventory low and quick-moving, thus avoiding wastage of hard-earned palay.”
Pamulco General Manager Ronald C. Briones Sr. was quoted in the statement as attesting LandBank fulfills its mandate.