DA to review Sugarcane Industry Development Act

MANILA, Philippines — The Department of Agriculture (DA) plans to review the two-year old Sugarcane Industry Development Act (SIDA) amid issues haunting the Sugar Regulatory Administration (SRA) and the whole sugar sector itself.

Agriculture Secretary Emmanuel Piñol said the agency would take a look at the existing sugar law and how concerns of the stakeholders could be addressed following the plan of President Duterte to abolish the DA-attached agency due to exorbitant payments for the hiring of consultants.

“While the SIDA is there, it has not addressed the vulnerability of the sugar industry particularly in the fluctuation of sugar prices. We want to see what else could be done,” Piñol told reporters in a chance interview Tuesday.

The agri chief said he had instructed Undersecretary Segfredo Serrano to lead the review of the SIDA and make a presentation before stakeholders on Sept. 29.

“We really have to review the sugar industry beyond just sugar. We saw that the industry sank due to prices. The fact that the industry was severely affected is a clear manifestation that while there is the SIDA, there are a lot of things that could still be done,” Piñol said.

“Just because it’s already a law does not mean it is already perfect. If that law was really effective, then the industry should not have dropped. That’s why we need to review. We have the law, but where did we lack?” he added.

While the DA is targeting to plug the loopholes in the SIDA, Piñol believes there will be no major amendments to the law.

“It will probably just include the fasttracking of the implementation of what has already been recommended like mechanization and the start of activities outside of just producing sugar, among others,” he said.

Piñol attributed the dismal performance of the sugar industry to the issue on importation of high fructose corn syrup (HFCS) which displaced local sugar production.

He also assured stakeholders that the order that places a cap on imports would stay and would not be revoked.

“That’s a one-sided view. At this point in time, we don’t see any reason why we should import. Prices have been low and farmers continue to complain.

The law, which took effect in 2015, lays down the conditions for the maximization of the country’s sugarcane resources and provides for increasing the competitiveness of the sugarcane industry, improving the incomes of farmers and farm workers through improved productivity, product diversification job generation and increased efficiency of sugar mills.

Among its provisions on increasing productivity is the institutionalization of the block farming program initiated by the SRA. As such, small farm lots, including farm lots held by agrarian reform beneficiaries would be consolidated into large production sites not smaller than 30 hectares.

The ownership of the lands, however, will remain with the landowners.