JV bats for nat’l intervention in looming sugar crisis

BACOLOD CITY, Philippines  — San Juan Rep. Joseph Victor “JV” Ejercito Estrada is pushing for a long-term national government intervention on the looming sugar crisis posed by the threats of the almost-zero tariff for imported sugar starting 2015.

As one tangible solution, JV is urging the government to implement a long-term livelihood program for local sugarcane farmers in anticipation of the stiff competition that will be posed by foreign sugar suppliers such as Thailand starting 2015.

JV’s call came amid the expected influx of imported sugar in the local market as a result of the country’s free trade agreement with the Association of Southeast Asean Nations (Asean).

Under the Asean Free Trade Area (AFTA) — Common Effective Preferential Treatment (CEPT), tariffs on imported sugar will go lower since tariff rates on sugar from competing ASEAN countries will be gradually reduced. This 2012, the duty on ASEAN sugar goes down to 28 percent, 18 percent by 2013, 10 percent by 2014, and 5 percent by 2015.

The solon warned that without a viable support program in place by the time the sugar tariff is lowered in 2015, some 500,000 sugarcane farmers stand to lose their livelihood. He said he had also discussed these concerns with planters groups in Bacolod City and Negros Occidental during his visit here recently.

As one of the solutions, the government should come up with alternative livelihood projects for sugarcane farmers, he said, suggesting that producing handicrafts such as rattan chairs may be a viable alternative for them considering these products’ appeal to the export market.

JV earlier asked the Sugar Regulatory Administration (SRA) to improve the economic condition of thousands of sugarcane farmers in the country, a large number of which are from Negros Occidental, the home province of his mother, San Juan City Mayor Guia Gomez.

Among ASEAN member-countries, Thailand is considered as one of the major suppliers of sugar in the region. The Thais produce sugar more efficiently, allowing its farmers to sell their sugar at a lower cost, he said.  (FREEMAN)