Sugar farmers seek ACEF allocation

The local sugar industry is asking the release of around P1.7 billion in duties on sugar imported in the years 2000 and 2001 that should have gone to the agricultural competitiveness enhancement fund (ACEF).

Documents from the Sugar Regulatory Administration (SRA) show that of the P1.7 billion in duties and taxes on sugar imported by the National Food Authority (NFA) which was authorized to bring in the sugar minimum access volume (MAV) for 2000 and 2001, only P438 million has been paid to the Bureau of Customs as evidenced by official receipts.

Another P828.9 million represents payments with the remarks "awaiting issuance of SARO" while P489.4 million remains unpaid by the NFA.

Under Republic Act 8170, the proceeds of the importation of the MAV shall be deposited in a special account intended for the ACEF, a fund created to assist agricultural producers adversely affected by the liberalization of imports under GATT/WTO.

The ACEF is the only real ‘safety net’ for agricultural producers, who had to compete on an unlevel playing field with highly subsidized imported substitutes, since the funds were intended to finance projects that can improve the competitiveness and productivity of local farmers.

It was however learned that the P438 million already paid by the NFA to the customs bureau was deposited in the general fund, instead of the special fund, and was used for budgetary support.

In 1999, the sugar industry which was allowed to undertake importations contributed around P1.6 billion in terms of duties and taxes levied on these imports to the ACEF, of which P400 million was released to the private sector to finance mostly fund-related projects.

The P400 million was used to establish high-yielding sugarcane variety nurseries, purchase tractors, and rehabilitate farm-to-mill roads. Another P200 million was allocated for the SRA, which it used to purchase tractors for each sugar mill district.

The Confederation of Sugar Producers Associations (Confed), the country’s biggest aggrupation of sugar farmers, said the President Arroyo herself on several occasions has emphasized that agricultural producers who are the most affected by cheap imports should benefit from the ACEF.

Confed national president Bernardo Trebol said the release of the 2000-2001 ACEF would be a big help to the sugar industry.

"Aside from continuing with the project that have already been started, sugar farmers intend to use the P1.6 billion, if released, for drainage systems as well as dredging of Central Negros, which is highly prone to floods," Trebol said.

Sugar farmers also noted that had government allocated the sugar MAV to the producers instead of the NFA, then the industry would have benefited immediately by making sure that the tariffs and duties went to the ACEF.