Senate to look into proposed deregulation of sugar industry

The Senate will conduct a hearing to determine the implications of allowing the unimpeded entry of sugar imports into the country and assess the implementation of laws affecting the sector, according to Senate Majority Floor Leader Juan Miguel F. Zubiri.

Zubiri said the hearing on the proposed liberalization of the sugar industry being pushed by economic managers is the “top priority” of the Senate once it resumes work in late July.

“We would discuss this sugar liberalization and review the Sida [Sugar Industry Development Act],” Zubiri said in an interview with reporters on Sunday in Bukidnon.

Zubiri said he and his colleagues would look into the bottlenecks and the challenges encountered by the government in implementing the Sida.

The Sida was enacted in 2015 with the goal of improving the productivity and making the local sugarcane industry competitive against other sugarproducing countries.

“We have to see what’s going wrong in implementing it and come up with proposals. What we need to do is come up with recommendations on how to make sugar affordable,” he said.

Zubiri said lawmakers could consider a measure that would allow planters to avoid middlemen and traders, “who are manipulating prices,” and sell sugar directly to buyers or consumers.

Furthermore, he said the issuance of an executive order or administrative order by the government would not be sufficient to deregulate the sugar industry.

Industry sources earlier said economic managers are looking at other options to avoid going through the legislative process.

Zubiri said, however, that the only way to liberalize the sugar industry is by amending two laws— the ISA and the Sugar Regulatory Administration (SRA) charter.

The executive branch, he said, could be slapped with lawsuits if it would merely issue an eO.

“[The eO or AO] may be a possible option for them but nothing can stop the sugar blocs from file queries with the courts on the motions of the government to push particular programs without necessary legislation,” he said.

“The rice [liberalization] went through legislation. I don’t think it’s that easy to liberalize the sugar [industry] without legislation,” Zubiri added.

Zubiri is one the 10 senators opposing the liberalization of the sugar industry, citing its detrimental effects on sugarcane farmers and the possible loss of investments.

Sugar farmers and millers said they will support Senatorial candidates who will oppose moves to deregulate the sector.

“We will show our appreciation to those who supported the sugar industry. We will show our support through our ballot,” United Sugar Producers Federation of the Philippines President Manuel Lamata said last Sunday.

National Federation of Sugarcane Planters enrique Rojas said the midterm elections in May would be an “acid test” of the capability of the sugar industry to help candidates win.

Rojas said the sugar industry used to be “one of the biggest and most solid blocs” that is capable of making a difference in elections.