CONFED proposes moves to address sugar industry woes

By: Dolly Yasa

BACOLOD City – The Confederation of Sugar Producers Associations, Inc. (CONFED) is proposing measures after a consultative workshop to address the challenges faced by the sugar industry and prevent threats of import liberalization.

A press statement from CONFED sent to Daily Guardian here said that the proposals, in a form of a resolution signed by CONFED Secretary Federico Locsin, were sent to the offices of Sen. Juan Miguel Zubiri, Agriculture Sec. William Dar and to the Sugar Regulatory Administration board.

It recommended programs to improve productivity, revisit the Sugar Industry Development Act (SIDA) and seek for the full restoration of its P2 billion budget, and enhance the institutional and political structure of the industry.

CONFED pushed for the expansion and providing support for the Block Farm program; mechanization through funds from SIDA and the 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.

CONFED spokesperson Raymond Montinola said there is also the “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.”

He said CONFED also pushed for a review of the SIDA law and its implementing rules and regulations (IRR) and 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, said farmers complained of the very tedious compliance in accessing programs under SIDA.

“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.”

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 SRA and to include “examination of its current organizational structure and capabilities and to ensure that SRA performs its mandate.”

“Industry stakeholders are 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,” CONFED 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 Zubiri’s Senate Resolution 156 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 create and mobilize the Sugar Industry Development Council (SIDC) to “facilitate coordinated and harmonized development initiatives for the good of the industry.”