The Department of Agriculture (DA) is currently reviewing 19 project proposals that may be bankrolled by a competitiveness fund, which consists of fees and safeguard duties slapped on imported agricultural goods.
The DA recently confirmed to the BusinessMirror that it has received 19 proposals from farmers who are seeking to gain access to the competitiveness enhancement measures fund (CEMF).
Broken down, the agency said 14 projects came from coffee cooperatives, four from the poultry industry, and one from the onion sector.
The DA recently revised the guidelines for the implementation of the CEMF, which was created under Republic Act (RA) 8800 or the Safeguards Measures Act to boost local industries injured by the influx of imports.
Under Memorandum Circular (MC) 34, the CEMF will bankroll initiatives within the domestic agri-fishery industries affected by higher import volumes.
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 circular read.
‘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 cooperatives 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 consists of 50 percent of earnings collected from fees, charges, and safeguard duties on imported goods.
Currently, the DA has P1.275 billion in its coffers to implement the projects that have been given the green light for implementation-P25 million under its 2026 General Appropriations Act (GAA) plus P1.25 billion from last year’s budget, based on government reports.
Industry sources noted that the fund, which they said stood at P5.16 billion as of 2024, comprises mostly of safeguard duties collected from shipments of imported coffee and poultry.