European Commission approves P640-million food security grant to RP

MANILA, Philippines - The European Commission (EC) has approved a 10-million-euro (approximately P640 million) food security grant to the Philippines to help assure the supply of rice seed and increase rice production.

The grant is part of a first package of projects to support agriculture and improve the food security situation in developing countries around the world.

The project will be implemented by the Department of Agriculture (DA) and co-financed by IFAD (the International Fund for Agricultural Development).

The grant for the Philippines is part of the first financing decisions taken in the framework of the 1-billion euro Food Facility which was approved by the European Union (EU) at the end of last year as a response to the growing food security problems faced by many developing countries.

Several other projects are also foreseen for the Philippines under the Food Facility, with the financing decisions expected in the coming months.

Commissioner Louis Michel, member of the EC responsible for Development and Humanitarian Aid, said in Brussels that Europe has already made humanitarian responses to the food crisis through emergency aid.

“The Food Facility is the development response, 1 billion euros over three years, to get agriculture back on its feet. The package as now adopted targets the 23 worst-hit countries, in response to the food crisis which already hit developing countries from last year,” Michel said.

“Over the months ahead, we must not forget the impact that the financial crisis and economic downturn will have on developing countries – this is only now becoming clear and could be much worse than expected. In attending to recovery plans for our own economy, the EU has in no way diminished our commitment to developing countries – as decisions like this clearly show,” he said.

Ambassador Alistair MacDonald, Head of the EC delegation to the Philippines, said “the Food Facility reflects the EU’s commitment to help the Philippines address the challenges of poverty and food security, and in particular to help increase rice production.”

“We have for many years worked with the Department of Agriculture and the Department of Agrarian Reform in promoting rural development, and are happy to be able to help now in relation to food production,” MacDonald said.

Within this Food Facility, the EC has earmarked a total of some 30-million euros for actions to be implemented in the Philippines. The first grant of 10 million euros for the Philippines, as well as the overall plan for the Food Facility, was approved this week by the Commission.

The grant will provide support for an irrigated rice production enhancement program, to be implemented by the IFAD in coordination with the DA and other relevant authorities.

The program aims to secure the supply of certified inbred paddy seeds for Communal Irrigation Schemes in order to improve rice production.  

About 40,000 metric tons of certified seeds will be provided during the 2009 planting season. More than 50 Communal Irrigation Schemes will be rehabilitated and more than 250 irrigators’ associations will be given support in post-harvesting activities, marketing, extension and education services.