Purpose and policy objective
- The Letter of Instructions orders increased financing and support to address the spiraling increases in the cost of fertilizer, farm chemicals, irrigation fees and other production inputs.
- The Letter of Instructions aims to assure continued rice production under the government’s Masagana 99 program.
Loans ceiling increase (Masagana 99)
- The Governor of the Central Bank of the Philippines, the President of the Philippine National Bank, and the Administrator of the Agricultural Credit Administration shall increase the Masagana 99 loans ceiling.
- The increase is from P900 per hectare to P1,600 per hectare.
- The Masagana 99 loans ceiling is increased effective immediately.
Palay support price increase
- The Administrator of the National Grains Authority shall increase the support price for palay.
- The support price for palay is increased to (P50) per cavan of 50 kilos.
Government assistance and coordination
- The National Food and Agricultural Council and other government agencies involved shall extend all assistance and cooperation in implementing the Letter of Instructions.
Parties directed to implement
- Implementation directives were issued to: the Governor, Central Bank of the Philippines, the President, Philippine National Bank, the Administrator, Agricultural Credit Administration, the Administrator, National Grains Authority, and the Chairman, National Food and Agricultural Council.