Sugar import liberalization opposed

Former militants who are now beneficiaries of the government’s agrarian reform program are appealing to economic managers to rethink the planned liberalization of sugar importation, noting its negative social impact.

Agriculture Secretary Emmanuel Piñol relayed the farmers’ concern in an interview with reporters after the Department of Agriculture and the Sugar Regulatory Administration concluded the Sugar Summit in Quezon City last week.

“Beyond the pricing of sugar-based products and concern about inflation, we have to note the social impact of this proposal on the people who could be easily convinced to resort to insurgence the moment life becomes difficult for them,” he said.

“Our stakeholders said the government should stand by its agrarian reform program, which could be imperiled the moment the sugar industry is deregulated,” he added.

Based on data, 80 percent of sugar farmers in the country are ARBs, or agrarian reform beneficiaries. A majority of them were reported to be former militants who were convinced to turn their back on rebellion in exchange for a sustainable livelihood.

Budget Secretary Benjamin Diokno has opened the possibility of deregulating the country’s sugar importation to bring down its retail cost in the markets. However, industry stakeholders said the measure would lead “to the death of the industry.”

There are 28 provinces in the country that rely on the sector for their livelihood, which contributes about P96 billion to gross domestic product.

Following this development is the request of industry stakeholders to review the Sugar Industry Development Act (Sida) and to ensure the competitiveness of the industry through the provision of a P2-billion subsidy yearly.

“Stakeholders feel that the distribution of the Sida funds were not focused on the needs of the industry. So they came out with a resolution asking for a review and possible amendment of Sida,” Piñol said.

Of the P2 billion fund, P1 billion is allocated for infrastructure, P300 million for credit, P300 million for facilities program, P300 million for the creation of block farms of land reform beneficiaries and P100 million for scholarships.