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Strengthening the agri-food sector: DA rolls out grants to enhance farmers’ capacities, distribution networks

The Department of Agriculture (DA) is set to distribute grants of up to P5 million to community-based organizations and local government units as part of its KADIWA program.

Under the 2023 General Appropriations Act, the DA has allocated a budget of P250 million for the KADIWA ni ANI at KITA program, aimed at supporting farmers and fisherfolk while enhancing the country’s food distribution system.

The grants are intended to serve as trading capital, enable the purchase of machinery or equipment for value addition, facilitate the acquisition of transport and delivery vehicles, establish storage and processing facilities, renovate KADIWA stores, or support the expansion of agri-fishery enterprises.

However, the grants cannot be used for non-food agri-commodities such as rubber, fiber, and copra, nor for production support like fertilizers and farm machinery or for relending purposes.

Interested parties are required to submit a project proposal, contribute 20% of the project cost, and ensure the sustainability of operations for five years. If a local government unit is applying as a conduit, it or the cooperative or association that will benefit from the grant should provide the 20% counterpart.

The letter of intent and project proposal must be submitted to the Office of the Director of Agribusiness and Marketing Assistance Service in the Central Office or the Office of the Regional Executive Director in the Regional Field Offices.

The proposal should include a detailed project description, marketing plan, business operations, financial analysis and projections, project cost requirements, project benefit analysis, work plan, and sustainability and risk management plan. The evaluation process will take approximately seven days.

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