RP prepares sugar industry for reduced tariffs

The Philippine government has started preparing the sugar industry for a free-trade scheme among members of the Association of Southeast Asian Nations (Asean). Agriculture Secretary Proceso J. Alcala met with sugarcane farmers, millers, ethanol producers, and other sugar stakeholders last week to talk about ways that the government can assist to ensure the competitiveness of the industry once the sugar tariff — under the Asean Free Trade Area-Common Effective Preferential Treatment (Afta-CEPT) — is slashed to 5 percent by 2015. "We have to prepare the country, the sugarcane farmers, and everyone to ensure the country's competitiveness," Alcala said. Tariff rates on imported sugar from competing Asean countries will be gradually reduced. By 2012, the duty on Asean sugar will go down to 28 percent, 18 percent by 2013, and 10 percent by 2014. Low or zero tariff could bolster the entry of more imports since users can already afford to buy from neighboring Asean countries. Last week, the Agriculture Department said sugarcane farmers and other industry stakeholders have indicated that "mechanization and ethanol production are keys to a more sustainable and globally-competitive sugarcane industry." Members of sugar Mill District Development Committees (MDDCs) said the government should help provide the necessary equipment, particularly tractors, irrigation systems and trucks. At present, there are 30 MDDCs throughout the country and are composed of farmers, millers and other stakeholders. Other farmers also insists for more farm-to-market roads in major sugar producing provinces for faster and more efficient transport of canes to the mills. As source of fund to bankroll their equipment needs, the MDCCs also propose that the performance bond and service fees from sugar imports should be turned over to the Sugar Regulatory Administration. The importation of sugar is presently done by the National Food Authority, with the agency receiving the fees. MDCCs will submit a resolution to Secretary Alcala, for his consideration and endorsement to President Aquino for approval. Small farmers requested for more accessible and affordable credit to enable them to buy high-yielding sugarcane seed pieces, fertilizers, other farm inputs, and postharvest equipment. —JE/OMG, GMANews.TV