January 06, 2015
Daily Star
By Carla Gomez
Government, business and sugar leaders yesterday were upbeat about Negros Occidental’s economy in 2015 despite the start of the Asian Free Trade Area agreement this year.
Vice Governor Eugenio Lason said the sugar industry will continue to be the driver of Negros’ economy.
“And with fuel prices at a low, I expect a good year for sugar. Baring any major typhoon, the agricultural sector will be a major player,” he said.
Support from the Business Process Outsourcing industry and Overseas Filipino Workers will also continue to contribute to Negros’ economy, Lacson added.
If fuel prices remain low for most part of 2015, Lacson said he expects strong consumerism.
Frank Carbon, president of the Metro Bacolod Chamber of Commerce and Industry, said the business community is very bullish for 2015 and beyond because of Rep. Alfredo Abelardo Benitez’s Sugarcane Act and the strong focus of Gov. Alfredo Marañon on industries that compliment the sugar industry.
“We’re expecting a lot of investments in Negros starting 2015 that will increase salary levels and create good paying jobs,” Carbon added.
Benitez (Neg. Occ., 3rd District) also said Negros Occidental’s economy will be better with the passage of the Sugarcane Industry Development Act of 2014. It is expected to be signed into law by President Benigno Aquino III early this year.
The congressional bicameral conference committee in December approved the Sugarcane Act, that now is assured of an annual appropriation of P2 billion to strengthen the competitiveness and boost diversification efforts of the sugarcane industry, Benitez said.
"The Year 2015 will be a challenging year for the Philippine Sugarcane Industry", Sugar Regulatory Administration administrator Ma. Regina Martin said.
However, the industry sees positive prospects and with the cooperation of all concerned, it will remain formidable to face the international challenges that beset the sugarcane industry sector, Martin said.
She said with the start of the ASEAN Economic Community, the tariff on imported sugar from ASEAN countries is now down to 5 percent.
“Amidst the threat of 5 percent tariff imposition on sugar importation under the AFTA, each sector of the industry has its own challenge to face: the farmers need to reduce their cost of production; the millers need to be more efficient; the traders need to stay on top of the market; and the government must use all means in ensuring that cheap imported sugar don't flood the PHL market.", Martin said.
With the impending passage of the Sugarcane Act it is expected that a more vibrant industry for all stakeholders is at hand, she said.
Martin also said the government is taking the lead in flourishing the industry by means of strengthening the small farmers through block farming, credit and financing schemes, among others; while at the same time, investors in biofuels, bioeenergy and other allied trades are given the green light to continue their initiatives towards a more resilient sugarcane industry.
Prices at the domestic market in December has averaged at P1,450 per bag of raw sugar. This is more than double the price of world market or "D" sugar, she said.
"The world sugar balance is still at a surplus thus, world market prices are still down-- and the domestic market is helping support the industry. This should continue within the first half of the year." Martin added.
“If the Sugarcane Industry Development Act is passed into Law, and the Sugarcane Industry Road Map is implemented with dispatch (and adequately funded), the industry will have time to make the necessary adjustments in the face of competition arising from free trade. 2015 will be a crossroad year for the industry”, Rafael Coscolluela, president of the Confederation of Sugar Producers Associations, said.
“We will be tested. Hopefully we will not be found lacking and caught with our pants down. But the opportunity for the industry to mature is there; it's up to us to decide where we go from here,“ Coscolluela added.
Enrique Rojas, president of the National Federation of Sugarcane Planters, said the Sugar Alliance and Sugar Regulatory Administration have instituted measures to make it hard for imported sugar to get into the domestic market to protect local producers from the full impact of trade liberalization that takes effect this year.
“Coupled with the projection by London-based commodities trader Czarnikow that the global sugar surplus will be only 600,000 MT this crop year compared to 4.4 million MT in the previous crop year, we hope that domestic prices will stabilize at its present level for 2015,” he said.
Rojas also said with the expected passage of the Sugarcane Act, “we are hopeful that it can help us, specially the thousands of small farmers, become more cost-efficient in our production and thus become more competitive in this era of trade liberalization.”
Manuel Lamata, president of the United Sugar Producers Federation of the Philippines, said 2015 will be scary with the near zero tariff on imported sugar. There will be a lot of unknowns, belt tightening will be needed, he said.*CPG