RP seeks $874m aid for agriculture

RP seeks $874m aid for agriculture

MANILA (Reuter): The Philippines yesterday unveiled a blueprint to boost productivity in agriculture in the next five years as it sought aid from international financial institutions.

The project, worth a staggering US$874 million, aims to make the country self-sufficient in feeding its growing population, said Agriculture Minister Salvador Escudero in a presentation to prospective donor countries and institutions.

"Agriculture provides a potent and efficient base for the nation's industrialization thrusts," Escudero said, adding that the Philippines had to address its falling output of major crops.

Declining output has forced the Philippines to import large quantities of rice, corn and sugar in the past two years.

"As the country gears up to face the challenges of a more dynamic world trade regime, the need to achieve greater productivity and competitiveness in the sector becomes even more imperative," said National Economic and Development Authority director Cielito Habito.

The agricultural productivity action plan addresses nine areas of concern in the country's declining agricultural productivity, from lack of irrigation and post harvest facilities to research and development.

Habito said the Philippines has to strengthen its agricultural sector because it has lagged behind the growth posted by other sectors.

"The agriculture sector, on which 51 percent of Filipinos rely for livelihood, has grown a mere 0.9 percent in 1995 -- a pale comparison to the 7.3 percent growth of the industry sector," he said.

The Philippines posted 5.7 percent growth in its gross national product in 1995.

Escudero said the agriculture sector has remained at a virtual standstill in the past two years due to inadequacies in infrastructure and support services, and what he called "erroneous" government policies.

"There is the irrational and unpropitious practice of devoting large tracts of farmland to crops with very low earnings per hectare in direct contrast to developing small farmlands with higher earnings per hectare," he said.

Participants at the forum said they welcomed the government's efforts to boost its productivity in the sector.

"A key constraint inhibiting agricultural growth in the past was the lack of an appropriate policy environment," said Asian Development Bank manager for agriculture and rural development (East) Robustiano Espiritu.

Among the institutions that attended the forum were the World Bank, Asian Development Bank, Food and Agriculture Organization, European Union, United Nations Development Program, Japan International Cooperation Agency and the United States Agency for International Development.

Officials from donor agencies, who received the detailed proposals for which aid was sought, said they supported the government's aims. They did not say when the proposals would be taken up for consideration.