Zubiri hits SRA inaction on looming sugar crisis

MANILA, Philippines - Former senator Juan Miguel Zubiri is criticizing the Sugar Regulatory Administration (SRA) for its alleged slow action on the problems of the Philippine sugar industry, particularly the threat of the almost-zero tariff for imported sugar starting 2015.

Zubiri is questioning the SRA on the supposed master development plan for the sugar industry, copies of which are reportedly given only to presidents of planters’ groups.

“I’m calling for the government now to give their message. If they do, I’ll give them the benefit of the doubt… If it’s true that there’s a master plan, please release that master plan, please publish that, and make sure it is not just a master plan but an action plan,” he said in a recent interview.

Zubiri lamented that even through the PowerPoint presentation of the plan is impressive, it lacks proper implementation.

“We must reform and reengineer our sugar industry or else we won’t survive the low tariff starting 2015,” he added.

Under the Asean Free Trade Area (AFTA) — Common Effective Preferential Treatment (CEPT), tariffs on imported sugar would go from competing ASEAN countries would be gradually reduced. This year, the duty on ASEAN sugar goes down to 28 percent, then 18 percent by 2013, 10 percent by 2014, and five percent by 2015.

Zubiri said the master development plan must also be released to small farmers, so the industry could prepare for the effects of lower-tariff on imported sugar in 2015.

Zubiri said his earlier criticism on the slow action on the problems of the sugar industry have ruffled the feathers of some SRA officials and planters’ groups, but he was only echoing the statements of more than 9,000 small farmers in Bukidnon.

He lamented that the government has not yet initiated steps on softening the impact of low tariff on the local sugar industry.

“I am sorry if I hurt the feelings of some people in the sugar industry, but I am only telling the truth about the sentiments of farmers in Bukidnon,” he said.

There are two sugar centrals in Bukidnon, he said. The sugar industry was brought almost 40 years ago to Bukidnon from Negros Occidental by his father Jose Ma. Zubiri, who is now Bukidnon vice-governor.

With prices of sugar per bag plummeting to between P950 to P900, Zubiri said Bukidnon farmers would rather go into banana or pineapple.

While Bukidnon farmers may go into fruit production, corn, rubber or palm oil production, Negros cannot shift to another industry.

Zubiri stressed the need to continue focusing on the sugarcane industry, adding that there are some farmers, even his relatives in Negros, still holding on to the idea of “quedans.”

“We have to change our mindset and to look at sugarcane, not just for sugar, but also for the production of energy and ethanol fuel,” he said.

The only way to survive the looming sugar crisis, Zubiri added, is to copy what India and Brazil, (which do not produce sugar) did which was to produce all products of sugarcane.