RP to seek $80-M food assistance from United States

CEBU CITY — The Philippine government will ask the United States for a total of $80 million (P4 billion) in food assistance next year in order to raise much-needed financial resources for the country’s agricultural and fisheries modernization program.

Agriculture Secretary Leonardo Montemayor told The STAR that in addition to the $40 million commodity loan which the US Department of Agriculture will make available next year for the Philippines under the US Public Law 480 program, the government will seek an additional $40 million, this time as food grant under another US program, Section 416.

Montemayor joined the presidential entourage which visited the city yesterday where President Arroyo addressed the 17th Philippine Advertising Congress whose attendance has reportedly ballooned to a record 6,000 delegates.

President Arroyo said the US government is increasing its assistance to the Philippine agricultural sector as part of a $4-billion package which resulted from the President’s recent visit to the US and her meeting with US President George W. Bush.

According to Montemayor, next year’s PL 480 assistance is supposed to be the same level as this year at $40 million but there are early indications that the US will give in to the Philippine request to double the amount next year.

The US government might make available under Section 416 milk powder part of which will probably be given to the Department of Social Welfare and Development or the Department of Health for the food needs of the poor while a large bulk will be sold and the proceeds will be used for agricultural modernization.

Also during her address, the President revealed that the USDA is making available a guarantee program of $150 million in support of modernization of Philippine agriculture and fisheries.

Mrs. Arroyo said this guarantee program will benefit the country immediately since it can be availed of as soon as the Philippines decides to use it.

A meeting of the local agricultural sector will be held next week to explain the mechanics of the guarantee and to determine who will avail of it. "Our problem has been our capacity to absorb official development assistance. We have to make sure that we will absorb this one immediately, the President said.

In an interview with The STAR, Montemayor explained that the $150 million export credit guarantee will be provided for by the US Credit Corp. (CCC). Under this program, a Filipino company can borrow money to purchase US products while the US CCC will provide the gurantee.

The agriculture chief said among the products that are covered by the program are agricultural machinery and equipment and post-harvest facilities.

The increased US assistance for the Philippine agriculture sector will add to the P20 billion allocated budget for agricultural modernization, he said.

Mrs. Arroyo also revealed that the US government will be allowing $1 billion worth of Philippine products to enter the United States tariff-free under the US Generalized System of Preference (GSP) program.

Montemayor told The STAR that among the products that the Philippines will recommend to include in the GSP are pineapples and canned tuna. "The US Congress will have to approve the inclusion of these products," he said.

The President instructed both Montemayor and Trade and Industry Secretary Mar Roxas to work with ‘friendly’ US legislators in order to ensure the inclusion of these two products.

Mrs. Arroyo likewise informed the advertising and marketing executives gathered in Cebu that the Philippine government will push for the inclusion of Cebu mangoes as among those that are allowed entry into US territory. Right now, only mangoes from Guimaras, which has been guaranteed, are allowed to be exported to the US after they are subject to vapor-heat treatment.

In the case of Cebu, Montemayor said the Philippines will request that irradition be used as an alternative to VHT as a means of getting rid of fruit pests. The paperwork for this particular request, he discovered, will be completed by the first quarter of next year.