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Rice contract growing backed

May 8, 2010

Agri Plain Talk


By ZAC B. SARIAN

April 30, 2010, 2:31pm

More contract-growing schemes in rice production is being advocated by Dr. Frisco Malabanan, the national program coordinator of Ginintuang Masaganang Ani program of the government.

During an interview at the Syngenta Rice Expo in Cabanatuan City, he cited a hybrid seed company’s scheme as a model. The scheme works this way. The company advances the inputs of the farmers not in cash but in the form of material inputs such as seeds, fertilizers and pesticides.

Also important is that the company supplies the right technologies such as application of the right kinds of fertilizer at the right growth stages of the plants. The seed company, for instance, has its technicians to help the farmers in their farming.

At the same time, the seed company buys the harvest of the farmers. To make sure that the farmers will not sell their harvest to other buyers, the seed company buys the harvest at 50 centavos per kilo higher than the prevailing market price in the case of fresh harvest. In the case of dried palay, the premium price is P1 per kilo.

Dr. Malabanan said that the scheme is working very well so that he estimates that no less than 3,000 hectares of irrigated farms are being cultivated under this scheme in Nueva Ecija alone, particularly in the towns of Talavera and Sto. Domingo.

The farmers are cultivating one to five hectares each. They have been harvesting 180 to 200 cavans of fresh palay during the dry season and 140 to 160 cavans during the wet season. The scheme is good because it enables the farmers to grow rice using the recommended practices without having to worry about money to purchase their input requirements. They also are assured of a good price for their produce.

The seed company, on the other hand, has the opportunity to also make money because they can sell their rice also at a good price because they have their own outlets. They package their rice in such a way that they can command a higher retail price.

http://www.mb.com.ph/articles/255317/rice-contract-growing-backed

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