Small Sugarcane Producers attend Tariff Hearing

A public hearing/consultation was conducted pursuant to Sections 401/402 of the Tariff and Customs Code of the Philippines for the waiver of CEPT-AFTA commitments on Rice and Sugar. TC Commissioner Edgardo Abon presided over the meeting. Some of the represented organizations and institutions were Tariff Commissions, DA, DTI, SRA, BOI, BOF, Philippine Sugar Millers Association (PSMA), Sugar Master Plan Foundation, Confederation of Sugar Producers, Inc. (CONFED), Sugar Alliance of the Philippines, PhilDHRRA, CARRD, NAGKASAMA Multi-purpose Cooperative, PDAP, etc. Most of the attendees were from sugar industry.

It was the first time that the consortium (PhilDHRRA, CARRD, PDAP, and NNAGKASAMA MPC) attended a public hearing/consultation on tariff and was the second time to present the position and policy recommendations of small sugarcane producers before the government line agencies and other industry stakeholders.

DTI Assistant Secretary Ramon Vicente Kabigting gave an update on status of Philippine commitments on rice and sugar tariff. Based on the MOU with Thailand, under the AFTA-CEPT scheme, in-quota and out-quota rate for rice is 40% until 2014 and 35% in 2015. Thailand has already signed the MOU last 7 April 2010. Unfortunately, copy of the said MOU may not be circulated. In regards to sugar,  based on the approved Protocol to Provide Special Consideration for Rice and Sugar, tariff on sugar will remain at 38% until 2011, then it will be at 28% in 2013, 18% in 2013, 10% in 2014, and, 5% in 2015.

The project consortium reiterated the position and policy recommendations of the small sugarcane producers. They shared that the group is quite glad that they were invited to the activity and that tariff reduction would be extended, which provides more time for the small sugarcane producers to prepare. However, there are supports needed to be adequately prepared for it. Also, crop shifting and diversification, as suggested by the industry, needs intensive/comprehensive programs and/or preparations. Further, small sugarcane producers who are mostly ARBs cannot afford to shift or diversify due to leasehold agreement that only allows them to plant sugarcane for 10 years. They also shared the results of the UA&P study commissioned by PDAP. The study says that at 38% tariff and lower, small producers would bear the most negative impact.

Sugar Master Plan Foundation shared that the development plan was a product of consultation with farmers, millers and refiners and that it focuses on strengthening and enhancing capacities of small producers. The project consortium clarified that unlike those who are affiliated with Mill District Development Councils (MDDCs), small sugarcane producers seldom get updates on programs, consultations, public hearings, workshops, etc. organized by SRA and the industry. Being smallholders, most of them could not be affiliated with MDDCs the due to high production quotas they could not meet. Ms. Rosemarie Gumera of SRA seconded that ARBs usually don’t benefit with MDDCs programs due to stringent requirements. However, DAR has budget for support services, which SRA would like to tap. She shared that they have long been negotiating with DAR to come-up with a joint program in support of small sugarcane producers.