Lawmaker pushes for sugar act

Thursday, February 9, 2012

THIRD district Representative Albee Benitez emphasized that an executive order may not be enough to address the problems and challenges faced by the sugar industry.

“That’s why I am pushing for the Sugar Act,” said Benitez during the meeting Wednesday with Sugar Regulatory Administrator Gina Martin and the Sugar Alliance of the Philippines at Nature’s Village Hotel in Talisay City.

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The lawmaker issued the statement in reaction to the position of the National Federation of Sugarcane Planters (NFSP), which stated that Executive Order No. 18 creating SRA in general and other laws provide ample remedies and powers to address the concerns of the industry.

NFSP suggested that Implementing Rules and Regulations for EO No. 18 be issued by SRA and the Department of Agriculture to address the industry’s concerns.

Some legal experts contend that EO No. 18, which was passed by President Cory Aquino when she possessed revolutionary powers, has the full force and effect of law.

Martin explained that NFSP President Enrique D. Rojas did not outrightly reject the Sugar Act.

“On the other hand, he qualified that actually the issue he objected to was the single selling of sugar, similar to what happened during the time of Nasutra (National Sugar Trading),” said Martin.

Rojas confirmed that NFSP is against the idea of ‘single selling’ for sugar, though he also emphasized that NFSP is not rejecting the sugar bill.

Consensus among stakeholders

Rojas explained that each planters federation formed a committee and called for a consultative meeting of all federation members to come up with recommendations on addressing issues and concerns in the industry.

The committee then presented these recommendations with other committees with from other federations to come up with a consensus.

The different committees of the planters and millers federations will decide what is good for the sugar industry. All sugar industry stakeholders will abide by whatever the committees agree on, Rojas stressed.

Rojas and Martin also stated that some recommendations might need legislation while other measures might be achieved through an executive order. Either way, whatever will come out will be for the good of the industry, they added.

Meanwhile, Benitez asked sugar stakeholders to submit within the month their respective position papers which they would like to be incorporated in his proposed Sugar Act.

“I’ve been hoping for them to move faster. We have been talking about this for quite some time. Some of them already gave their proposals and recommendations. So far, only one sugar federation has not yet come up with a position,” he said.

NFSP published the position paper, which its representatives presented last month, while Unifed president Manolet Lamata confirmed that his federation has also presented its recommendations.

According to Benitez, his proposed bill will not contain only what he wants, as he assured that he will seriously study the recommendation in all the position papers for inclusion in his proposed legislation.

“There is fear on single selling because we used to have that kind of system and I guess the stakeholders did not have a pleasant experience,” he admitted.

“It’s not the system; it’s the transparency and the process on how that will take place,” he said, adding that some people question the idea as something contrary to a free enterprise environment.

Benitez urged stakeholders to be united, as there are other congressmen who also have their own interests who also would like to present some kind of bill for the sugar industry.

Fairness to both producers and consumers

Benitez also explained that his proposed bill will address the conflict between the consumers and the producers.

“The consumers are absolutely happy if the price of sugar drops at the expense of the sugar planters who will be happy if the price of sugar goes up,” he added.

On the other hand, Martin said that they are elated with the presence of Benitez in their meeting Wednesday.

She said the sugar leaders will come up with a thorough study of issues and concerns and come up with recommendation which can ensure the industry’s sustainability beyond 2015 when zero-tariff on sugar kicks in.

If some measures need legislation, we will present them to our congressman, according to Martin.

“In other issues where government assistance is needed, these will also be properly presented by the end of this month. That was the agreement reached.

Concerns come 2015 include the lowering of the tariff from zero to five percent. We would want to ensure that we protect ourselves, the sugar industry and make sure that we survive.

We’re trying to come up with level playing field with the world market. It’s a commitment to make sure that the sugar industry will be profitable come 2015. That’s why all the stakeholders including the miller’s association have been meeting to prepare for the future challenges.

They are also studying other sugar producing countries like Thailand, China, Malaysia, Indonesia and how we can come up with a good relationship,” Martin said.