Agriculture Secretary William Dar has vowed to review the implementing rules and regulations (IRR) of the Sugarcane Industry Development Act (SIDA).
Dar also committed to review the memorandum of agreement (MOA) with government agencies and the private sector on the implementation of the law.
“I have personally analyzed that the projects under the law have not moved. Hence, my first order of the day is now to review and strengthen the IRR, as well as the MOA with partner government agencies and the private sector,” the agriculture chief said during a hearing of the Senate committee on agriculture and food.
“I affirm my personal commitment to personally oversee the necessary rebooting when it comes to how the law is implemented,” the agriculture head said.
Senator Cynthia Villar, chairperson of the Senate agriculture and food panel, expressed dismay over the reported failure of the Sugar Regulatory Administration (SRA) to fully implement SIDA, which resulted in the reduction of its budget from P2 billion in 2016 to only P500 million in 2019.
Villar said SIDA is a measure “meant to make sure the sugar industry will be able to compete head-on against foreign players.”
“I passed the law to boost the sugarcane industry.”
“I passed the law to boost the sugarcane industry which contributes P70 billion to the country’s economy annually. Moreover, an estimated 700,000 Filipinos are directly employed in sugar production. The industry really plays a vital role in the country’s economic development,” the veteran legislator stressed.
Villar said the reduction of the SIDA through the years has been the result of underspending, which if left unchecked, might result in a budget of only P67 million by 2020.
Under the law, P2 billion will be given yearly to the sugar industry –15 percent or P300 million for block farm grants; 15 percent for research and development, capability building and technology transfer; 15 percent for socialized credits to be implemented by Land Bank of the Philippines (LBP) for farm support and mechanization; 5 percent or P100 million for scholarship grants and human resources development programs; and 50 percent for infrastructure development programs for farm to mill roads, irrigation and transport infrastructure.
“Why there is underspending?”
“Nakakalungkot dahil napakaraming pwedeng paggamitan ng pondo para matulungan ang mga sugar industry players, lalo na ang mga maliliit na magsasaka. Bakit nagkaroon ng underspending (It’s frustrating because there are many initiatives and programs which can be financed by the fund to help sugar industry players, especially the small farmers. So why there is underspending?),” the lady senator said.
Confederation of Sugar Producers (CONFED) spokesperson Raymond Montinola earlier said they have been urging Congress to revisit the law, especially its IRR.
“We have been often told that the only way for our sugar industry to be globally competitive is to improve our productivity for which the SIDA law was created so that we can mechanize, have technical and financial assistance, and more. We have continuously urged to revisit the law, especially the implementing rules and guidelines, which has been very constricting for the sugar producers to access, particularly the small planters and our agrarian reform beneficiaries which comprise over 85 percent of sugar producers, yet none has been made,” Montinola said.