QuestionsQuestions (LETTER OF INSTRUCTIONS NO. 228)
A Letter of Instructions is an executive issuance by the President directing specific actions by government agencies. LOI No. 228 is a presidential directive addressed to particular officials and agencies (Central Bank, PNB, Agricultural Credit Administration, National Grains Authority, and the National Food and Agricultural Council) to implement measures under the Masagana 99 program.
LOI No. 228 increased the Masagana 99 loans ceiling from P900 per hectare to P1,600 per hectare.
The increase took effect “effective immediately” as stated in LOI No. 228.
LOI No. 228 ordered the Governor of the Central Bank of the Philippines, the President of the Philippine National Bank, and the Administrator of the Agricultural Credit Administration to increase the Masagana 99 loans ceiling. In general, the Central Bank relates to financial policy/credit measures, PNB to lending operations or implementation, and the Agricultural Credit Administration to agricultural credit administration.
The LOI cites “spiraling increases” in the cost of fertilizer, farm chemicals, irrigation fees, and other production inputs to assure continued rice production under Masagana 99.
LOI No. 228 ordered the National Grains Authority to increase the support price for palay to P50 per cavan of 50 kilos.
It specifies a “cavan of 50 kilos.”
The National Grains Authority.
They were directed to “extend all assistance and cooperation in the implementation” of the LOI.
The text provided does not mention additional conditions or qualifications. This implies that the implementation agencies were expected to carry out the ceiling increase within the existing Masagana 99 framework without new eligibility requirements stated in the LOI itself.
It simultaneously adjusts credit (increasing loan ceiling) and price support (increasing palay support price), indicating a coordinated policy to stabilize farmers’ production incentives and affordability of inputs.
It was done in the City of Manila on November 28, 1974, and signed by Ferdinand E. Marcos.
It explicitly links rising production costs (fertilizer, chemicals, irrigation fees, and other inputs) to the need for increased government support through higher credit limits and higher palay support prices to ensure continued rice production.
The covered program is “Masagana 99,” and the commodity is “palay.” These terms are legally significant because they identify the program and commodity to which the credit ceiling and support price directives apply.
1) Increase Masagana 99 loans ceiling from P900 to P1,600 per hectare effective immediately; and 2) Increase palay support price to P50 per cavan of 50 kilos.