Confed proposes measures to address sugar industry challenges

MANILA — The Confederation of Sugar Producers Associations, Inc. (Confed) has recommended several proposals, an offshoot of a consultative workshop set in February 2020, to address the challenges faced by the sugar industry including on import liberalization.

The proposals, in a form of a resolution, recommend programs to improve productivity, revisit the Sugar Industry Development Act (SIDA), and seek the full restoration of its PHP2-billion budget and enhance the institutional and political structure of the industry.

Under increasing productivity, Confed is pushing for the expansion and providing support for the “block farm” program; mechanization through funds from SIDA and the Department of Agriculture (DA) or access to affordable loans from government financial institutions; mill upgrading and standardization as well as value-adding for mills through biotechnology and product diversification; and mobilizing “progressive sugarcane farmers” as farm consolidators, service providers or as peer mentors.

Block farming is a consolidation of small farms to take advantage of plantation scale production. It aims to improve productivity especially on sugarcane and coconut farms owned by agrarian reform beneficiaries.

Confed spokesman Raymond Montinola, in a statement on Thursday, said there is also an “imperative need for additional support on research and development, not only in developing and propagating new varieties that can withstand weather and soil challenges but on technology that can make farms more efficient”.

The group is also pushing for a review of the SIDA law and its implementing rules and regulations (IRR).

It also urges the streamlining of application process, speed up fund utilization, fast-track program implementation, and adjust fund allocation formula based on determined industry priorities.

Nicholas Ledesma, president of Confed Negros-Panay chapter, in a statement, said there have been numerous complaints from farmers of “very tedious” compliance in accessing programs provided for by the SIDA law.

“The need to streamline processes must be addressed urgently as this has led to underutilization of the SIDA fund which, in turn, hampers our plan to modernize and improve on our productivity,” he said.

Confed added there is a great need to enhance the industry’s stature and manage negative perceptions by projecting a “new and more positive image”.

“The industry has always been at the receiving end when retail prices of sugar go up which is why, one of our urgent recommendation is to undertake direct sugar marketing to address this issue,” Montinola said.

Ledesma said these proposals were collectively arrived at by members of the Confed board who went through a series of consultations and workshops, knowing that the reprieve the industry got on the threat of import liberalization from the economic managers is temporary and “we have to do something to address our own problems, with help from government of course”.

In a separate resolution, Confed also requested the DA to “conduct a performance audit” on the Sugar Regulatory Administration (SRA) and to include “examination of its current organizational structure and capabilities and to ensure that SRA performs its mandate”.

Industry stakeholders have been concerned about the manner in which industry affairs have been managed, sugar policy determined, conduct of stakeholder consultations and implementation of SIDA programs by or in coordination with SRA, the group said.

“Given the industry’s current challenges, it is timely to examine the effectiveness by which SRA performed its mandated functions and responsibilities with the end in view of determining what measures are needed for SRA to serve the industry better,” it added.

In line with this, Confed is urging SRA to establish a rationalized and calibrated sugar allocation and import/export policy; comply with Senate Resolution 156 penned by Senator Migs Zubiri, which recommends conversion of “A” sugar to be allocated for local industrial consumers; establish a mechanism to address shortage of local supply for industrial users; and issue importation authority to industrial users only to the extent of the actual shortfall, among others.

Confed is also urging SRA to create a full time “Project Management Unit” that will focus on SIDA programs, and establish and mobilize the Sugar Industry Development Council (SIDC) to “facilitate coordinated and harmonized development initiatives for the good of the industry”.