Small sugar farmers seek tariff cover extension

MANILA, Philippines - Small sugarcane producers aligned with the Philippine Partnership for the Development of Human Resources in Rural Areas (PhilDHRRA) are appealing to the government to delay lowering the tariff cover on sugar to give sugar sector more time to adjust to trade liberalization.

The small sugarcane stakeholders are also urging a medium-term development plan that should include plans for a diversification of crops to offset the impact of tariff reduction; promotion of organic sugarcane production as an alternative industry; more investments in research and development and full implementation of the Comprehensive Agrarian Reform Program (CARP).

Small sugarcane farmers also want more representation in sugar alliances and milling organizations to be able to claim needed support services and policies for their sector; a more equitable 60-40 farmer-miller sharing of sugarcane proceeds, as well as better access to credit, technical assistance and other agri-extension services.

They are also asking for lower tariffs on fertilizer inputs to lower their cost of production; a review of sugar classifications and quedan bidding systems and stopping sugar smuggling from other countries.

The small sugarcane farmers have drawn up a position paper containing their policy recommendations which they will present during a sugar industry stakeholders forum on the 2010 tariff reduction today at the Bureau of Soils and Water Management (BSWM) along Elliptical Road in Quezon City.

The sugar industry is fearful that the implementation of the ASEAN Free Trade Agreement-Common Effective Preferential Tariff (AFTA-CEPT) could kill the sector.

The small sugarcane farmers claim that for almost two decades, development policies on agriculture do not seem to seriously take into consideration the welfare of small-scale producers.

They acknowledge that “high production subsidy may not really be the answer to agricultural development. Nevertheless, policies should still be packaged for many small-scale producers in the country.”

Such policies, they urge, need effective and efficient implementation.

The small sugarcane farmers likewise admit that there are some opportunities from trade liberalization.

However, they argue that  “there must be an enabling environment in the country first for the small producers to take advantage of those opportunities,” hence the need for additional time to develop a medium-term plan.