Title
Sugarcane Industry Development Act 2015
Law
Republic Act No. 10659
Decision Date
Mar 27, 2015
The Sugarcane Industry Development Act of 2015 aims to enhance the competitiveness of the sugarcane industry in the Philippines by improving productivity, providing support programs for farmers, promoting research and development, and implementing infrastructure projects, while also ensuring compliance with the Comprehensive Agrarian Reform Program.
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Q&A (Republic Act No. 10659)

Republic Act No. 10659 shall be known as the Sugarcane Industry Development Act of 2015.

The main policy objective is to promote the competitiveness of the sugarcane industry, maximize the utilization of sugarcane resources, and improve the incomes of farmers and farm workers through improved productivity, diversification, job generation, and increased efficiency of sugar mills.

The Block Farm Program consolidates small sugarcane farms within a two-kilometer radius into a minimum area of 30 hectares to achieve economies of scale without affecting individual land ownership. It aims to improve productivity through shared resources, technical support, and market access priorities for certified block farms.

The Sugar Regulatory Administration (SRA), the Department of Agriculture (DA), the Department of Agrarian Reform (DAR), and other concerned government agencies.

The Farm Support Program provides socialized credit loans through the Land Bank of the Philippines (LBP) for acquiring production inputs, farm machinery, and implements for sugarcane production.

The SRA, in coordination with the Department of Science and Technology and other research institutions, shall intensify research on high-yield sugarcane varieties, pest control, farming and milling technologies, and other related innovations to support the sugarcane industry.

Refined sugar withdrawn for actual physical export shall be subject to VAT zero-rating as per Section 106(A)(2)(a)(1) of the National Internal Revenue Code. Refined sugar is defined as having a sucrose content with a polarimeter reading of 99.5 and above.

Sugarcane farmers and their associations, mills, consolidators, muscovado producers, distilleries using sugarcane products, sugar traders, warehouses, bag manufacturers for sugar packing, and cane hauling and harvesting service providers.

No, nothing in this Act exempts any landholding from CARP coverage.

An aggregate amount of Two billion pesos (P2,000,000,000.00) annually, allocated for block farm grants, socialized credit, research and development, scholarships, and infrastructure support as specified in Section 11.


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