After months of delay, the Philippine Center for Postharvest Development and Mechanization (PhilMech) said it will soon start distributing farm machines worth P2 billion to qualified farmers under a program backed by the rice competitiveness enhancement fund (RCEF).
PhilMech said it has ”successfully conducted the bidding” for the first batch of farm machines funded under the 2019 RCEF. The mechanization component of the RCEF receives an annual fund of P5 billion from 2019 to 2024.
The attached agency of the Department of Agriculture (DA) had targeted to distribute the farm machines last year. However, National Economic and Development Authority (Neda) Assistant Secretary for Regional Development Mercedita A. Sombilla said the delay in the release of the RCEF and lack of manpower impeded the procurement of machines.
The DA, Sombilla said, also encountered delays in the accreditation of cooperatives which is needed to ensure that they had the “economies of scale” needed in using the machines.
“The P2 billion worth of farm equipment bidded out and awarded forms the first batch to be awarded to qualified farmer cooperatives and associations (FCAs) under the mechanization component of RCEF,” PhilMech Executive Director Dr. Baldwin G. Jallorina Jr. said in a statement.
”The next batch of farm equipment to be bidded out will amount to P3 billion. PhilMech conducted an exhaustive evaluation of qualified FCAs before the bidding was conducted starting late last year,” Jallorina added.
PhilMech said the first batch of equipment that was successfully bidded out is comprised of four-wheel tractors, rice combine harvesters, rice reapers, precision seeders, walk-behind transplanters, riding-type transplanters, hand tractors, floating tillers, mini rice threshers, mobile rice mills and rice mills.
Except for the four-wheel tractors, rice planter/seeders and rice combine harvesters, the rest of the equipment bidded out were locally fabricated, PhilMech added.
However, PhilMech made an assurance that the four-wheel tractors and rice combine harvesters would be sourced from ”respectable and established” global brands.
”A total of 495 four-wheel tractors, 356 rice combine harvesters and 576 hand tractors are set for distribution to qualified FCAs. Also set for distribution are: 103 rice reapers; 52 precision seeders; 106 walk-behind transplanters; 118 riding type transplanters; 347 floating tillers; and 46 rice mills,” it said.
PhilMech said the next batch of equipment that it will distribute for free may include mechanical dryers and other types of farm equipment needed in the rice value chain.
The agency estimated that farm mechanization can lower the cost of cultivating palay (unmilled rice) by P1 to P2 per kilogram. At present, the cost of producing a kilo of palay in the Philippines is P12.72 compared to P6.62 in Vietnam and P8.86 in Thailand, according to PhilMech.
”Besides evaluating the FCAs, PhilMech also conducted training for trainers who would impart knowledge on the importance of farm mechanization and maintenance procedures for agricultural equipment to the farmers and cooperatives/associations qualified to be beneficiaries under RCEF’s components,” it said.
PhilMech spearheads the implementation of RCEF, a guaranteed P10-billion annual fund to improve the rice sector under the rice trade liberalization law.