Zubiri warns: Economic team cannot shortcut sugar liberalization

BACOLOD CITY  , Philippines  —  Even if the economic team is taking the lead in opening up the sugar industry, it cannot easily do so without passing through necessary legislative actions, a lawmaker assured the industry.

This, as the National Economic and Development Authority (NEDA) is allegedly “easing constraints administratively” on the matter which means that the liberalization may no longer need a law, but just an administrative order (AO).

Sen. Juan Miguel Zubiri, who is against sugar liberalization, said an AO would not be able to amend the Sugar Industry Development Act (SIDA) which was passed a few years back to protect the industry.

“It may be a possible option for them, but nothing can stop the sugar blocks to file queries to the courts on the motions of government to push particular programs without necessary legislation,” Zubiri said in a briefing here.

“Even the rice tariffication went through legislation, I don’t think it is going to be that easy to liberalize sugar without legislation paving the way for that. I don’t think it is enough,” he said.

To fully open up the local market to cheap imported sugar, the SIDA and the Sugar Regulatory Administration (SRA) Charter should both be amended.

“The creation of the SRA tasked to monitor the import and export of sugar, that also needs legislation, I don’t think a mere AO can do that,” Zubiri said.

While there are some senators who are against the liberalization, Zubiri said it is possible that some are already working on it.

“The usual style there is that NEDA or any government agency will draft a proposal and pass it to some of our colleagues that are friendly or warm to the idea. But, we are hoping that the next batch of senators will be supportive of us,” Zubiri said.

“There are probably a few who would support it, I don’t want to put them on spotlight. Those who did not support us on HFCS (high fructose corn syrup), they are probably more open to the idea of liberalizing the industry,” he said.

Once sessions resume in July, Zubiri said the Senate would begin discussing the economic team’s push for liberalization, as well as the review of the SIDA.

The SIDA is supposed to get P2 billion a year and yet only about P500 million to P700 million are being released to help farmers.

“We have to see what is going wrong with its implementation and come up with proposals. What we need to do is come up with recommendations on how to stabilize prices that are affordable to people,” he said.

“What we can do is allow SRA to help the federation link them with direct buyers already. What is happening right now is that traders manipulate the prices, they buy it so low and sell it a huge profit,” he added.

Among the provisions that Senate will look into include farmers support on the rollout of irrigation, mechanization, farm-to-market roads, possible direct selling, and credit facility.

The sugar industry contributes an estimated P96 billion to the national economy from the sale of raw sugar, refined, molasses, and ethanol and P5 billion in value-added tax payments on refined sugar.

It employs 720,000 workers in 28 sugar-producing provinces and in which 82,000 farmers, mostly agrarian reform beneficiaries and small farmers, are dependent on it for their livelihood.