Lawmakers push relief for sugar industry

BACOLOD CITY—A group of lawmakers has registered opposition to moves of the Department of Finance (DOF) to liberalize sugar importation.

Negros Occidental Rep. Francisco “Kiko” Benitez and Abang Lingkod Rep. Joseph Stephen Paduano joined more than 20 others in filing House Resolution No. 412 on Wednesday, warning that sugar import liberalization would kill the sugar industry.

They said the resolution was geared toward safeguarding the welfare of sugar farmers, and farm and mill workers in 28 provinces.

The lawmakers said the liberalization of sugar importation would adversely affect the livelihood of 84,000 sugar farmers and 720,000 industry workers.

Big taxpayer

The sugar industry, valued at P120 billion annually, contributes P4.5 billion in value-added taxes, P37 billion in excise and P6.9 billion in corporate income and real estate taxes, Benitez pointed out.

He added: “Negros, in particular, is reeling from the pains of the industry struggling to modernize. The economic viability of small sugar farms cultivated by agrarian reform beneficiaries (ARBs) remains tenuous.”

“Programs designed to help the industry diversify and modernize are underfunded and 93 percent of ARBs wait for the promised support.”

Benitez, vice chair of the House committee on agriculture and food, said an inquiry would scrutinize programs for sugar farmers, 90 percent of whom were ARBs and determine how the Sugar Regulatory Administration would manage importation.

Paduano, a deputy minority leader, also bewailed the low government support.

Republic Act No. 10659, or the Sugar Industry Development Act (Sida), “earmarks P2 billion annually for programs to revitalize the industry” which also contributed 39 percent of new excise.

And yet, he said, for 2019, only P565 million was allocated for Sida programs and only 500 million for 2020.

Insult and injury

“It adds insult to injury that instead of supporting the domestic sugar industry, the DOF is pushing for liberalization which will exacerbate the ills of the industry,” Paduano said.

“Have we not learned from the negative impact of liberalization on local rice farmers? We cannot and will not allow more suffering, this time of our sugar farmers,” he said.