QuestionsQuestions (PRESIDENTIAL DECREE NO. 388)
PD 388 is titled “Creating the Philippine Sugar Commission.” It creates the Philippine Sugar Commission to promote the integrated development and stabilization of the sugar industry and to support its growth and continued effectiveness as an economic and social factor.
The policy is to promote the integrated development and stabilization of the sugar industry so it can properly discharge its economic and social responsibilities and contribute to the national economy.
It is composed of one Commissioner who serves as Chairman and six Associate Commissioners.
They are appointed by the President. Members must be Filipino citizens with sufficient experience in the sugar industry and of proven honesty, integrity, and recognized competence.
The Chairman and members hold office for a term of four (4) years unless sooner removed for cause.
The Commission meets in regular session twice a month, and it may be called for special sessions by the Chairman as needed.
The Commission may establish policies for all phases of the sugar industry, and may inquire into other aspects of the industry to improve existing methods and systems.
The Commission may enter into contracts, transactions, or undertakings necessary or incidental to its functions and objectives with any natural or juridical person and with foreign governments, private corporations, partnerships, institutions, or individuals.
It authorizes the Commission to levy and collect charges, fees, and contributions to finance its operations and for social amelioration of workers and other purposes determined by the Commission. The amount of these fees/charges/contributions must be approved by the President.
It means the Commission acts as the centralized entity to buy and sell sugar at the stage covered by quedan permits, to promote effective merchandising and distribution.
It is based on the total anticipated cost of production per picul as determined by the Commission plus a corresponding reasonable profit margin set by the Price Control Council or an authorized price-regulating government agency, considering effects of devaluation and other economic factors affecting production, processing, marketing, transportation, and other expenses, including minimum wage.
It must be adjusted in direct relation to significant changes in the cost of production as determined by the Commission and the Consumers Price Index prepared by the Central Bank.
When a sugar mill or refinery fails to meet its financial and other contracted obligations for two years or has become inefficient in its operation.
There shall be a Social Welfare Office under the Office of the Chairman of the Commission.
Stabilization fees are collected from planters and millers at P2.00 per picul produced and milled for five (5) years from approval of the Decree, and P1.00 per picul produced and milled every year thereafter.
Fifty centavos (0.50) per picul of the amounts levied on planters, millers, and traders under Section 4(c) is used for payment of salaries and wages of personnel and fringe benefits/allowances. It constitutes a lien on the sugar quedan and/or warehouse receipts and must be paid immediately.
They are abolished and absorbed upon organization of the Commission, with their assets, liabilities, and records transferred to the Commission; personnel may be retained, while those not retained are entitled to retirement benefits or gratuity as determined by the Commission.