Quedan financing and socialized credit programs for sugarcane farmers set
Sugar Regulatory Administration (SRA) and Landbank of the Philippines (LBP) have firmed up the quedan financing and socialized credit programs for the sugarcane industry amid the declining price of sugar in the country.
SRA Administrator Serafica, Sugar Board Member Beltran and LBP President Alex Buenaventura recently agreed on the terms for the quedan financing and socialized credit programs.
Both officials agreed in principle, subject to approval by the LBP Board, to provide quedan financing using landbank’s regular fund at an interest rate of 6 percent for sugarcane farmers cultivating sugarcane farms with 250 hectares and below and 7.5 percent interest rate for farmers having more than 250 hectares with no charges on processing fees.
They also agreed to apply not more than 2 percent interest rate for the socialized credit program.
This interest rate is also pushed by Senator Cynthia Villar who is very supportive to the cause of the sugarcane industry.
SRA and LBP are now finalizing the guidelines and other details so that the farmers will have access with these credit facilities as soon as possible and they will not be forced to sell their sugar quedans at very low prices.