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In a July 25, 2006 op-ed for ABN-CBS News, columnist Dan Marino gives his take on why the Governmnet of the Philippines continues to promote its hybrid rice program in the face of widespread complaints from farmers. According to Marino, "the Department of Agriculture (DA) set off to implement the hybrid rice program with what has been called a gargantuan allocation from the coffers of the agrarian reform program. DA officials contracted SL Agritech, owned by Henry Lim Bon Liang, to supply the seeds for use in the program. Lim’s outfit is what is called a 'preferred supplier' since it bagged the deal without the benefit of public bidding. SL Agritech is the sole authorized supplier of the hybrid rice variety accepted by DA officials. It sells seeds to farmers at below-market prices, but collects the difference from the government. Going by the estimates of certain farmer organizations, SL Agritech may have already made some P208 million from the subsidy scheme."

The SL Agritech rice has been a huge failure for farmers. As Marino points out, "seven out of every 10 farmers who planted SL Agritech’s seeds quit after the first year." But, according to Marino, "rather than address legitimate grievances, SL Agritech and the department have gone on a public relations blitz in their bid to demolish the farmers’ complaints .... Why can’t the DA simply investigate the entire hybrid rice program to the satisfaction of the complaining farmers? Is the DA hostage to the preferred subsidized supplier? Did the multimillion-peso subsidy deal SL Agritech bagged without public bidding turn the officials deaf to the rice farmers’ grievances?"

Philippines: Poor performance of "preferred supplier"