Barking up the wrong tree

The fact that sugar is such a highly politicized crop is evident once more in Negros Occidental as politicians look for someone to pin the blame on for the drop in sugar prices.

It appears that the group of presidential brother-in-law Iggy Arroyo, who is running for a congressional seat, as well as the camp of presidential aspirant Fernando Poe Jr., want Sugar Regulatory Administration chief James Ledesma to be the proverbial sacrificial lamb. Arroyo’s camp believes that Ledesma’s ouster will save face for the President. In the case of FPJ’s camp, the motivation is clear. Someone has to be blamed.

James is an honorable man who definitely did not need the job. In fact, he reluctantly accepted the post. He knows how thankless a government job can become.

The downtrend in sugar prices cannot be his doing. How can it be? How can the SRA administrator possibly stop smuggled sugar from coming in? Under his leadership, the Philippine sugar industry achieved record production levels. If not for smuggled sugar, prices would have been fair for both producers and consumers.

The Confederation of Sugar Producers Associations (Confed), the largest aggrupation of sugar farmers in the country, in fact came out with a manifesto in support of Ledesma. As far back as I can recall, this is the first time that the sugar industry rallied behind the SRA chief.

According to Confed, the present crisis in the sugar industry has brought out the strength and decisiveness of the leadership of Ledesma. In consultation with the industry and with the approval of the President, he did the following:

Accelerated the shipment of four percent "D" (export sugar) and hastened the shipment to the US of "A" sugar. SRA furnished the customs bureau a list of reported customs bonded warehouse operators abusing their import privileges and requested for an audit on actual usage of sugar. SRA agreed to provide the bureau an advanced schedule of shipment of CBWs to foil diversion of stocks to domestic buyers.

Initiated steps to stop sugar smuggling by mutual agreement with the customs bureau to vest the presidential anti-smuggling task force with visitorial powers identified by industrial players on recipients or custodians of smuggled sugar;

Required SBMA to first secure SRA clearance or permit for any sugar import and to stop any such import as well as to review the MOA between SBMA and importers allowing Manila s transshipment point; With the held of the Sugar Alliance convinced the BIR to suspend issuance of a revenue regulation infringing on the exemptions of agricultural cooperatives as provided for under the Tax Code and to defer any revisions on the 10 percent VAT on refined sugar.

But aside from these, Confed pointed out the benefits that the industry has reaped for the past two and a half years when the composite price averaged P840 per bag.

Through James’s leadership, the sugar industry has likewise successfully launched various initiatives, including:

• The Sugar Master Plan, a 10-year program for the sugar industry designed to increase production in anticipation of the advent of globalization;

• Strengthening of the mill district development councils which resulted in the successful propagation of higher yielding sugarcane varieties resulting in a 14 percent increase in production during the past two crop years;

• Secured the release of the agricultural competitiveness enhancement fund which made the funds available for the purchase of tractors, farm implements, nurseries, and other equipment;

• Secured the transfer of sugar from the temporary exclusion list of the AFTA to the sensitive list;

• Secured from the President and the Cabinet their consent for notification to the WTO of the Philippines‚ intent to increase sugar’s final bound tariff rate from 50 to 85 percent;

• Secured Presidential assurance to give sugar producers the right to determine first if importation under the minimum access volume is needed as well as distributing the MAV to planters and millers on a pro-rata basis; and

• Convinced the President to issue EO 84 restoring the 55 percent tariff on colored sugar which was previously reduced to only five percent by the Estrada administration.

The political wannabes are definitely barking up the wrong tree.

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