Some rice farmers’ cooperatives and associations (FCAs), particularly those in coastal areas, may have to wait a few more months for their free farm equipment from the government, as distribution has been delayed anew.
For the second time in a row, the Philippine Center for Postharvest Development and Mechanization (PhilMech) missed its target date for completing the distribution of the farm equipment.
The attached agency of the Department of Agriculture (DA) failed to complete by April the delivery of all farm equipment financed by the 2019 and 2020 rice competitiveness enhancement fund (RCEF).
PhilMech had assured beneficiaries of the mechanization program that the machines pending under the 2019 RCEF would be distributed before the end of 2020 and that the delivery of equipment funded by the 2020 RCEF would be completed by the first quarter of this year.
Under the six-year RCEF, which started in 2019, PhilMech shall receive half of the P10-billion total fund annually for the distribution of free equipment to rice farmers’ cooperatives and associations.
As of June 28, PhilMech has distributed 6,253 units or 79 percent of its 7,912 procured equipment under the 2019 program while it has delivered 69 percent or 5,445 units of the 7,926 units procured using the 2020 funds, based on data disclosed by the agency.
PhilMech said the inability of local manufacturers to deliver local technologies as well as Covid-19-pandemic related mobility restrictions caused the delays in the distribution of the free equipment.
The agency said the remaining units that have not been distributed are those bound for beneficiaries in coastal municipalities and provinces.
It said suppliers are having difficulties delivering the equipment to target beneficiaries due to the lack of ferries and domestic port congestion as well as the stringent Covid-19 quarantine rules of some provinces.
Given these concerns, PhilMech said it extended the deadline of affected suppliers by 30 to 45 days. However, the agency said the suppliers will be liable for liquidated damages if they fail to deliver the equipment before the end of July.
Section 68 of the implementing rules and regulations of the Government Procurement Reform Act states that the amount of liquidated damages shall be at least equal to one-tenth of one percent (0.001) of the cost of the unperformed portion for every day of delay.
“Once the cumulative amount of liquidated damages reaches ten percent (10%) of the amount of the contract, the Procuring Entity may rescind or terminate the contract, without prejudice to other courses of action and remedies available under the circumstances,” it read.
PhilMech said it will complete the delivery of all the pending units for the 2019 and 2020 RCEF mechanization component by the third quarter.
Based on documents provided by PhilMech, 1,694 FCAs and local government units (LGUs) were included in the final list of beneficiaries for the 2019 fund while 2,081 FCAs and LGU beneficiaries were covered by the 2020 fund. The FCAs and LGUs are from 947 municipalities in 57 rice-producing provinces.
The BusinessMirror broke the story that PhilMech, as of March 21, was only able to deliver 50 percent of its machine distribution target using its 2019 and 2020 RCEF funds. (Related story: https://businessmirror.com.ph/2021/03/29/philmech-farm-machine-distribution-hits-50-of-goal/)
As for equipment that will be procured using the 2021 allocation, PhilMech said it has completed the validation and shortlisting of the 1,694 FCA-beneficiaries and has started the bidding for the procurement of 4,921 farm technologies.
PhilMech said it is “hopeful” that the delivery of the machines bankrolled by the 2021 fund would start within the next 120 days.
The mechanization component of the RCEF program seeks to reduce the average production of rice by P2 to P3 per kilogram and slash farmers’ postharvest losses by 3 percent to 5 percent by the end of the six-year program.
Industry players and experts said the machinery distribution tack is perhaps one of the most aggressive and comprehensive rice mechanization programs the government is pursuing. (Read this Broader Look piece: https://businessmirror.com.ph/2021/01/07/mechanization-moves-agriculture-sector-slow-but-sure-to-modern-farming/).