Farmer cooperatives supported by the Rice Business Innovations System (RiceBIS) of the DA-Philippine Rice Research Institute (PhilRice) have secured more than PhP128 million worth of rice supply contracts with local government units (LGUs) through Republic Act No. 11321, or the Sagip Saka Act.
The contracts cover rice supplies for food assistance, subsidy, and social welfare programs in several provinces, providing participating cooperatives and farmers with more stable markets and better income opportunities.
The Sagip Saka Act allows national government agencies and LGUs to directly procure agricultural and fishery products from accredited farmers’ cooperatives and enterprises, creating opportunities for organized farmer groups to participate in government procurement and institutional food supply programs.
One of the beneficiaries is the Avanceña Beneficiaries and Farmers Multi-Purpose Cooperative in Cabadbaran City, Agusan del Norte, which secured a PhP12.99-million contract to supply rice for the city’s food program from May to October.
According to Sharen T. Rivas, RiceBIS focal person of PhilRice Agusan, RiceBIS interventions helped the cooperative meet procurement requirements through logistics support, assistance in sourcing sacks compliant with national standards, supply coordination with partner cooperatives, and guidance in securing Philippine Good Agricultural Practices (PhilGAP) certification.
Several LGUs that do not yet have qualified cooperatives for Sagip Saka procurement have also expressed interest in partnering with the Agusan RiceBIS group, Rivas added.
PhilRice teams in other RiceBIS areas have facilitated similar market opportunities for farmer cooperatives.
Dr. Michelle C. Quimbo of the PhilRice Los Baños RiceBIS team reported that the Sorosoro Ibaba Development Cooperative secured a PhP27-million contract to supply 45,000 bags of 10-kilogram well-milled rice in Batangas. The cooperative also obtained a PhP73-million contract in Imus City, Cavite, for the purchase and delivery of rice for indigent families and individuals, with distribution scheduled from July to December.
Additional Sagip Saka orders were also secured by the Sariaya Farmers’ Federation in Quezon and the Pangkalahatang Samahan ng Magsasaka sa Siniloan in Laguna, with each cooperative generating about PhP5 million in contracts.
In Zaragoza, Nueva Ecija, three RiceBIS cooperatives—Batitang Agriculture Cooperative, Pinagbuklod ng Adhika Multipurpose Cooperative, and Zaragoza People’s Agriculture Cooperative—collectively secured a PhP5-million contract to supply 10-kilogram bags of well-milled rice beginning in June.
The contract, negotiated directly by the municipal government, provides participating farmers with a ready market while supporting local food security initiatives.
PhilRice-facilitated RiceBIS partnerships have also created opportunities beyond direct contract holders.
In Balanga City, Bataan, the Cupang West Multi-Purpose Cooperative was awarded a PhP17-million contract to supply rice under the city’s subsidy program for senior citizens across 25 barangays. Part of the requirement will be sourced from the Greater Bani Multi-Purpose Cooperative (GBMPC), a RiceBIS partner cooperative that will supply 8,500 packs of 10-kilogram rice, including NSIC Rc 218, a PhilRice-developed variety that won a Silver Award at the World’s Best Rice competition.
To help more farmer groups access similar opportunities, the PhilRice Los Baños RiceBIS team recently conducted an orientation on the Sagip Saka negotiated procurement process for farmer cluster members in Naujan, Oriental Mindoro, Quezon, and Laguna, in partnership with the Department of Social Welfare and Development Region IV-A.
The activity equipped farmer organizations with knowledge of government procurement requirements and institutional market opportunities. Building on this effort, PhilRice will also conduct an online briefing and workshop for RiceBIS cooperatives nationwide to familiarize them with the Sagip Saka procurement process and help prepare more farmer groups to participate in government food supply programs.
According to Atty. Joycel R. Panlilio, Department of Agriculture Assistant Secretary for High Value Crops, Sagip Saka Act, and Intellectual Property, the Sagip Saka Act was established to expand market opportunities for farmer organizations by allowing government agencies and LGUs to directly procure agricultural products from accredited cooperatives and enterprises.
PhilRice Executive Director Dr. John C. de Leon said the contracts demonstrate how strengthening farmer organizations and linking them to markets can translate into tangible economic opportunities for farming communities.
“The Sagip Saka Act is opening doors for our farmer cooperatives to become reliable suppliers for government feeding and food assistance programs. Through RiceBIS, we are helping strengthen their capacity not only to produce quality rice, but also to consolidate supply, meet procurement standards, and compete in larger institutional markets. This is an important step toward improving farmer incomes while strengthening local food systems,” de Leon said.
The Rice Business Innovations System (RiceBIS) is a PhilRice-led program that helps farmer cooperatives become competitive and profitable enterprises through process, product, and marketing innovations. By strengthening farmer organizations and linking them to markets, the program enables cooperatives to capture greater value from the rice value chain and access opportunities such as government procurement under the Sagip Saka Act.
