Vol. XXII, No. 194 [ BusinessWorld Online ]
Wednesday, May 6, 2009 | MANILA, PHILIPPINES
BY NEIL JEROME C. MORALES, Reporter
THE GOVERNMENT wants to maintain the level of rice areas planted with hybrid seeds this year despite plans to remove subsidies on hybrid seeds in the coming cropping season, an agriculture official said yesterday.
The Department of Agriculture plans to increase land planted with hybrid seeds to as much as 700,000 hectares in 2013.
The Department of Agriculture plans to increase land planted with hybrid seeds to as much as 700,000 hectares in 2013. — AFP
"This year our target [is planting] more than 200,000 hectares [with hybrid seeds this year]," Frisco M. Malabanan, director of the National Rice Program, said in a phone interview.
Last year, 224,713 hectares of rice lands were planted with hybrid seeds as the government gave a P1,500 subsidy per farmer per hectare, data from the Agriculture department show.
Prices of high-yielding hybrid seeds cost P3,500-P4,000 per 40-kilogram bag, more than triple the P1,200-per bag certified seeds. Mr. Malabanan said hybrid rice attains at least 15% more produce than certified seeds’ four to five metric tons of palay per hectare.
"That is the role of the [government’s] guarantee funds to ensure that loans are available at the local level so farmers can still buy hybrid seeds," Dr. Malabanan said.
Early this year, the government set aside P3.683 billion to guarantee farmers’ loans.
"Farmers are already used to farming with hybrid seed. They will buy hybrid seeds because they have already been encouraged," Henry Lim Bon Liong, president of hybrid seed producer SL Agritech, said in a phone interview.
However, the lack of hybrid seeds is challenging the government’s plan to increase land planted with hybrid seeds to 500,000-700,000 hectares in 2013, Dr. Malabanan said.
"That is dependent on the availability of seeds. We are trying to coordinate with seed producers to produce more," he added.
The Philippines, which is only 90% rice self-sufficient, bought 1.5 million metric tons of rice from Vietnam this year.
"We do not have contiguous properties of land [in the country] to produce our seeds," Mr. Lim said, adding that 1,000-2,000 hectares of contiguous land is needed for hybrid seed production.
Mr. Lim said SL Agritech eyes signing a joint venture with a Vietnamese firm late this year to develop hybrid seeds in 7,000-10,000 hectares. He added that they will produce hybrid seeds in 1,600 hectares of land in Indonesia in June.
SL Agritech, which also develops seeds in China, Bangladesh and India, corners 50%-60% of the local hybrid seeds market. The seed producer also has a 100-hectare plantation in the municipality of Sta. Cruz in Laguna and 700-800 hectares in the town of Lupon in Davao Oriental.
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