CRASH MONOPOLY! Challenge
ABACA PRODUCTION CENTER-Brgy. Rosal, Libacao, Aklan
The municipality of Libacao is identified to have 70% poverty rate. Some of the major factors that effects in this situation is High Expenses on Hauling of Products and Transportation due to lack of improved road and bridges, Low Price of Agricultural Produce (Rice and Abaca) due to monopoly of traders, Most of the rice farmers are tenants (high cost of land rent or shared-cropping), limited access to agricultural implements such as post-harvest facilities and other farm inputs and damaged crops due to erosion and flooding since Libacao is identified as disaster prone area. Furthermore, due to low income opportunity in Libacao, most of pantawid pamilya beneficiaries don’t have the capacity to access other social insurance services (aside from Philhealth) which adds up to their burden.
Libacao is also identified as the prime producer of abaca fiber in Western Visayas which constitute 70 per cent of the total production however, in most instances of abaca trading, the “comprador” in the town center usually pegged the buying price of the fiber always disadvantageous to the producers. The GIZ (German Cooperation) 2014 study revealed that trading price in global market of high grade fiber reaches to P188.00 while in Iloilo City based trader nailed the buying price at P44.00, this kind of arrangement resulted to slow rural economic growth.
Initiative The Municipal Action Team of DSWD organized the pantawid beneficiaries into an association named SALIKA or Samahan it Libacaonon para sa Kauswagan. The the conceptualization and formation of SALIKA transpired from the triangulation of three assessment tools of DSWD, PSA for KALAHI-CIDSS, SWDI for Pantawid Pamilyang Pilipino Program and PLIA of Sustainable Livelihood Program. SALIKA is dynamic approach of MAT of Libacao to empower people to combat this situation. SALIKA would basically embody the thrust of pantawid pamilya beneficiaries in the Local Development Council, help in the delivery basic social services, conservation of environment and provide vehicle for economic opportunity development. Initially, SALIKA implemented the Through the Mutual Aid Benefit for PP grantee Project. Grantees individually pay Php 40.00 every month as a form of savings and premium for life insurance. For every grantee that will die, the family will get Php 15,000.00 as aid or assistance. The Mutual Aid Benefit Program started last August 2013. At present, the total members are 1,215 and the total collection is Php 743,448.39 as of January 2015. The association is also promoting People’s Participation in governance. The association and Federation ensure voice in development planning and governance by acquiring membership in local special bodies (i.e. barangay development council, municipal development council, local poverty reduction action team) SALIKA in partnership with Non-Timber Forest Product (NTFP), a non-gov’t organization funded by ICCO invested in the propagation of rain forestation crops like abaca (tabukanon variety) and indigo ferra (blue dye) for textile use and its link to market. They have transferred a 1.2 million grant to SALIKA for reforestation and established a 700,000-worth of Abaca Production Center. Finally, last January 2015 SALIKA engaged in Abaca Trading to counter monopoly of traders. SALIKA acquired a Php. 100,000.00 worth of loan from Abaca Regional Trader and the money was also extended 5 members as capita to operate in the barangay level and SALIKA serves as their consolidator. The amount extended to members is amounting to Php. 8,000.00 to 10,000.00.
Result The farmers are able to rehabilitate 40 hectares of forestral land in order to protect environment and to lessen the risk of flooding and landslide in the area. Through the Mutual Aid Benefit Program, there were already 7 pantawid pamilya household who received Php. 15K after the passing of the grantee. SALIKA is playing a part in good governance. As part of the LDC, they are playing their part in the formulation of long-term, medium-term and annual socio-economic development plans and policies of the LGU and through it they can embody their thrust for better economic and social services. Through giving higher value to their products, it increases the income of our pantawid beneficiaries and they can have better access to basic commodities for the daily needs of their family. While providing capital assistance to bona fide pantawid beneficiaries, they can earn from engaging in abaca trading. Abaca industry is one of the promising and sustainable industries in the Philippines and it already made few people rich, these people become rich because they monopolized the industry. Thus, if the association will not go through the local traders and go directly to regional traders they can earn bigger income. In the long run, the association is gearing towards controlling the trading activities in three barangays which are major producers so that the association can control the supply side and as an effect private traders will have no choice than to play fair in Abaca Trading.