Villar pushes P1.5 B fund for sugar sector

Sen. Cynthia Villar is pushing for funding of up to P1.5 billion for the sugar industry’s development amid the government’s continued slashing of its annual budget due to underspending. Villar, chair of the Senate Committee on Agriculture and Food, is urging the

Department of Budget and Management not to cut the 2020 budget for the Sugarcane Industry Development Act of the Sugar Regulatory Administration (SRA).

DBM plans to allot only P500 million next year from the supposed P2 billion as mandated by the law.

It originally wanted to give a measly P67 million to the industry.

“If they can’t give the P2 billion, at least P1.5 billion. The P500 million is too small for the industry,” Villar said during yesterday’s Senate hearing.

“The P2 billion aims to help sugar farmers. Why is the reduction happening? The DBM has this thinking that if you’re not spending your allocation, maybe you don’t need it,” she said.

The SIDA budget has been cut over the years from P2 billion in 2016, P1.5 billion in 2017, P1 billion in 2018 and P500 million this year.

In fact, only about P3 billion over the last four years have been translated to the industry from the supposed aggregate of P8 billion since the enactment of the law in 2015.

Villar said the SRA was only successful in implementing the infrastructure support portion of the law and the scholarship grant. The other components including block farms, capacity building and socialized credit have been underperforming.

Meanwhile, Agriculture Secretary William Dar appealed to lawmakers to help the agency come up with an incentive system for mills and planters to further develop the industry.

Dar also called for the review and the strengthening of the implementing rules and regulations of the law as well as the existing agreements with partner government agencies.

“The law is regarded by many as a piece of social legislation as it did not only promote the competitiveness of the sugarcane industry, but also improve the income of farmers through increased productivity,” Dar said.

“While it has been four years after its conception, SIDA has yet to give birth to an improved production and income. We have yet to see the sweet outcome of the law,” he said.

The law mandates, among others, the construction of farm to mill roads, support for the strengthening of block farms of at least 30 hectares in area, formed out of small individual farms, to make them more productive and profitable as commercial enterprises.

The SIDA was enacted in recognition of the sugarcane industry’s vital role in the country’s economic development.

The law, which took effect in 2015, lays down the conditions for the maximization of the country’s sugarcane resources and provides for increasing the competitiveness of the sugarcane industry, improving the incomes of farmers and farm workers through improved productivity; product diversification; job generation and increased efficiency of sugar mills.