Sugar industry stakeholders are calling on government to consider allotting a portion of the revenues from the Tax Reform for cceleration and Inclusion (TRAIN) Law to sugar farmers.
TRAIN slapped excise on sugar-sweetened beverages (SSB) effective 2019.
They also reiterated their clamor for the proper implementation of the Sugar Industry Development Act (SIDA) which allots funds for the modernization of the industry
Various industry yesterday lauded the recent passage of House Resolutions Numbers 412 and 439 opposing the proposed liberalization of sugar importation.
“This is another victory for the industry following the unanimous opposition of the (House of Representativcs) and the Senate,” said David Alba, Tatak Kalamay’s convenor.
Enrique Rojas, president of the National Federation of Sugar Planters, said the passage of resolutions by both houses of Congress “should send a strong message to our economic managers to cease their call for liberalization, because the legislative branch which represents people from all walks of life, opposes sugar import liberalization.”
The passage of the house resolutions came amid a call for an inquiry by sugar industry leaders on a pronouncement of the Department of Finance calling for the possibility of allowing industrial users and food manufacturers to directly import sugar due to alleged soaring prices of local sugar.
The industry debunked the claims and presented papers showing millgate prices of sugar had been steady at an average of P34 per kilogram.
This prompted Bukidnon Rep. Manuel Zubiri to recommend connecting farmers straight to consumers to remove cut the middlemen and further bring down the retail prices of sugar.
Abang Lingkod Rep. Stephen Paduano said granting sugar farmers a 10 percent share from the excise tax on SSB would only be equivalent to P3.7 million annually.
But Paduano said the amount and the P2-billion annual required allotment for SIDA can help accelerate the modernization of the sugar industry and make it globally competitive.
However, allocations for the SIDA fund has been on a steady decline as it is not being utilized efficiently.
This is because farmers fail to comply with tedious requirements of banks for loans.
Industry stakeholders earlier appealed to r the Sugar Regulatory Administration for the creation of a full-time project management unit that will focus on SIDA programs as well as the mobilization of a council that will facilitate coordinated and harmonized development initiatives for the good of the industry.
