SRA launches farmers credit facility
Sugar Regulatory Adminstration's (SRA) credit facility worth R324 million is now available to sugarcane farmers, which will help them acquire farm equipment that will, in turn, improve the country's sugar production.
This, as sugar production for the crop year 2017 to 2018 is seen to go down to 2.27 million metric tons (MT) due to heavy rains experienced in Visayas and Mindanao.
SRA Administrator Hermenegildo Serafica said the formal launching of the agency's Socialized Credit Program — which will be implemented under the Sugarcane Industry Development Act of 2015 (SIDA) — was held yesterday on the sidelines of the first SRA Farm Mechanization Expo in Bacolod.
Under SIDA law, a socialized credit shall be made available, through the Land Bank of the Philippines, for the acquisition of production inputs, farm machineries, and implements necessary for the continuous production of sugarcane.
Two years since the enactment of the law, the implementing rules and regulations (IRR) for socialized credit was just signed in January, Serafica said.
"We had to iron out the details with Landbank and ensure we get the lowest interest rates. We are now accepting applications," Serafica said in a text message.
Serafica explained that under this program, small sugarcane farmers can avail of sugarcane production loan at 2 percent interest, while planters associations and cooperatives can avail of common service provider for farm machineries loan at 6.5 percent interest.
SRA is currently holding its first ever Philippine Sugarcane Industry Mechanization Expo, which aims to improve the country's sugar production.
In the last sugar crop year, which starts in September and ends in August, the country's production shot up to its highest level in 34 years to 2.5 MT.
But as mentioned, a decline is seen for the current crop year due to bad weather.
Serafica is hoping that mechanization will also somehow entice more farmers to stay in the industry, saying that lack of sugar workers is also slowing down the production.
He said that many sugarcane cutters are now venturing into construction amid the government's infrastructure push.
For this year, SRA will get a budget of R1 billion to implement SIDA law.
SIDA aims to establish productivity improvement programs in the sugar industry; provide the needed infrastructure support for farmers; enhance research and development of other products derived from sugar, sugarcane, and their by-products; provide human resource development and extension services; and provide financial assistance to small farmers.
"Of the R1 billion, R750 million will be used to the development of 47 kilometers Farm-to-Mill Road projects, the R250 million will go to the Block Farm Program," Serafica said. In total, the fund approved for the block farm program from 2016 to 2018 is R874 million.
Beginning 2016, sugarcane block farms received funding support through SIDA in the form of farm machineries like tractors, farms implements, harvesters/cutters and loaders, irrigation equipment, farm management seminars, and start-up capital such as canepoints, soil rehabilitation, and land preparation services.