New law opens valves of gov’t funding for sugar industry

BACOLOD CITY—For the first time, the national government is allotting funds for programs to boost the sugar industry.

At least P2 billion has been set aside in the 2016 national budget to finance the implementation of a new law, the Sugar Industry Development Act (Sida) or Republic Act No. 10659, authored by Rep. Alfredo Benitez (third district, Negros Occidental province).

Benitez said he pushed for the enactment of Sida because he wanted to strengthen the sugarcane industry amid stiffer competition expected as a result of lowered tariff on imported products starting this year.

“The government funding will be a big boost to the revitalization efforts of the sugarcane industry. We are very optimistic that gains from the funding will immediately be felt in the sugar-producing provinces,” he said.

Through Sida, Benitez said the sugar industry could demand annual allocation for programs that would improve the industry.

“The law holds the national government accountable for the continuous improvement of the industry,” Benitez said.

In 2016, the government allocated P324.7 million for block farming, P324.7 million for socialized credit programs, P224.7 million for research and development programs, P108.2 million for scholarship and human resource development programs and P914.4 million for farm to mill roads.

The block farm program includes the purchase of 50 sets of machinery and irrigation equipment, 50 hectares of nurseries for high-yielding sugarcane varieties and 1,500 hectares of land for use as demonstration farms and soil rehabilitation technology.

Socialized credit funds cover crop loans, nonblock farms and block farms that are not qualified for grants under the block farms program.

To be funded, also through Sida, are equipment service centers for sugarcane farms and local fabrication plants supporting farms, mills, distilleries and other processing facilities required by the sugarcane industry, Benitez said.

The new law also funds research and development that includes generation of soil fertility maps and soil profiles of sugarcane plantations, breeding of new sugarcane varieties, improvement of soil and other laboratories and research studies on increase in biomass and sugar content of sugarcane through nuclear or biotechnology.

“The industry should celebrate this law because it now has a clear basis to demand the annual allocation for programs for the improvement of the sugarcane industry,” said Benitez.

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