The Department of Agriculture (DA) issued the revised rules for the implementation of a measure aimed at boosting the competitiveness of domestic industries injured by the influx of cheaper imports.
In a document obtained by the BusinessMirror, Agriculture Secretary Francisco Tiu Laurel Jr. signed Memorandum Circular (MC) 34, which outlined the revised guidelines for the implementation of the competitiveness enhancement measures fund (CEMF).
‘The CEMF shall specifically finance and support initiatives within the domestic agri-fishery industries affected by the increased imports.’
The DA retained the P50-million grant ceiling per project for every proponent, which will be disbursed in a staggered or milestone release following a memorandum of agreement (MOA) entered into by both parties.
The MOA should stipulate the terms, requiring the proponent to provide an equity contribution for the project, which could be given in the form of cash, labor, land for the project site, facilities, equipment, or a combination of these.
Under MC 34, however, the value of a proponent’s contribution would depend on the size of their assets.
For those whose assets do not exceed P3 million, their equity contribution should be 20 percent of project cost; more than P3 million to P15 million, 40 percent; over P15 million to P100 million, 60 percent; and more than P100 million, 85 percent. The DA will complete the required amount through grants.
‘The proposed counterpart contribution of the proponent shall be considered in the prioritization for the grant of the fund, taking into account the need to distribute the limited funds equitably.’
‘The amount of the request per proponent shall not exceed the value of their total assets, provided that the maximum amount that may be requested remains at P50 million.’
Eligible project proponents include registered cooperative or associations of Filipino farmers and fisherfolk accredited by the DA as well as registered agribusiness enterprises or corporations, preferably micro, small, and medium enterprises (MSMEs) in the farm sector.
The CEMF was created under Republic Act (RA) 8800 or the Safeguards Measures Act, comprising 50 percent of earnings collected from fees, charges, and safeguard duties on imported goods.
Budget documents showed that the government allocated P25 million for the CEMF this 2026.
This adds to the P1.25 billion funding earmarked for the CEMF under the DA’s 2025 budget, which Tiu Laurel had confirmed to this newspaper that the DA is yet to use amid the guidelines’ revision.
Industry sources said the fund consists mostly of safeguard duties collected from coffee and poultry shipments. The DA earlier said it already received eight project proposals from the coffee sector.
The balance of the CEMF as of end-2024 stood at P5.16 billion.