Declaration of Policy
- The State aims to promote competitiveness and maximize utilization of sugarcane resources.
- Objectives include improving farmer incomes, productivity, product diversification, job generation, and sugar mill efficiency.
- The State commits to:
- Establish productivity improvement programs.
- Provide infrastructure support.
- Enhance R&D on sugarcane products.
- Provide human resource development and extension services.
- Offer financial assistance to small farmers.
Productivity Improvement Programs
- Programs to boost sugarcane and sugar production and increase incomes include:
- Block Farm Program:
- Consolidates small farms into a minimum of 30 hectares within 2 km radius to achieve economies of scale.
- Ownership remains with individual landowners.
- Government agencies provide machinery, funding, training, and development activities.
- SRA develops guidelines, provides management support, monitors farms, recommends continuation or cessation after 6 years, and implements certification.
- Certified block farms get priority market access.
- Farm Support Program:
- For farms not eligible for block farm program.
- Includes socialized credit via Land Bank of the Philippines (LBP).
- Loans secured by lien on farmers' crop (quedan).
- Technical assistance and deployment of agricultural professionals by SRA and partner agencies.
- Farm Mechanization Program:
- Encourages use of machineries for all farming stages.
- SRA, DA, DAR, and LGUs promote mechanization including service centers.
- Research and development for mechanization is supported.
- LBP manages socialized credit related to mechanization.
- Block Farm Program:
Research and Development
- Intensify research on:
- High-yielding and flood-resistant sugarcane varieties.
- Pest control, farming, milling, refining, biomass technologies.
- Soil fertility, weather monitoring, climate change adaptation.
- Sugar consumption patterns and derivable products.
- DA and DOST assist in crop forecasting and monitoring.
Extension Services
- Provided by SRA, Mill District Development Councils (MDDCs), DA, DAR, SUCs, NGOs.
- Services include technical advice, propagation of high yielding varieties, demonstration farms.
- MDDCs encouraged to form partnerships with NGOs, people's organizations, LGUs.
Human Resources Development
- Collaborative formulation and implementation of HRD Master Plan by DOLE, SRA, CHED, TESDA, PRC, private sector.
- Elements include:
- Capacity building and skills training for farmers and workers.
- Scholarship program for agriculture, engineering, sugar technology students.
- Capability training and seminars on latest technologies.
- Development of competency standards and training regulations by TESDA.
- Upgrading educational facilities and training programs in sugarcane areas.
Infrastructure Support
- Includes transport, farm-to-mill roads, and irrigation facilities to enhance production and marketing.
- Transport Infrastructure:
- Agencies like NEDA, DOTC, DPWH, PPA to prioritize construction/improvement of transloading ports.
- Farm-to-Mill Roads:
- Prioritized construction/rehabilitation in sugarcane provinces with master plan from SRA.
- Irrigation:
- NIA and other agencies to construct efficient irrigation facilities.
- Use of treated wastewater from mills encouraged and exempt from charges if meeting safety standards.
Sugar Supply Monitoring System
- SRA to establish supply chain monitoring from sugarcane to retail sugar.
- Mandatory registration with SRA for:
- Sugarcane farmers, associations, mills, consolidators, muscovado producers.
- Distilleries using sugarcane products.
- Sugar traders, warehouses, bag manufacturers.
- Cane hauling and harvesting service providers.
- Registration procedures designed to minimize stakeholder cost.
- Non-registration subject to penalties.
Classification and Regulation of Sugar Supply
- SRA classifies imported sugar properly when local production suffices.
- Bureau of Customs requires SRA classification before sugar release.
VAT Zero-Rated on Refined Sugar for Export
- Refined sugar (polarimeter reading >= 99.5) withdrawn for export is VAT zero-rated.
- Raw sugar classified below 99.5 polarimeter reading.
- BIR to issue regulations implementing this with SRA and stakeholder consultation.
Mandated Appropriations
- DBM mandated to allocate annually at least PHP 2 billion from 2016:
- 15% for Block Farm Program grants.
- 15% for socialized credit in farm programs.
- 15% for R&D, capability building, technology transfer.
- 5% for scholarship grants.
- 50% for infrastructure support.
- SRA to consult stakeholders in planning fund utilization.
- Supplemental appropriation of PHP 2 billion in current year specified.
CARP Coverage
- The Act does not exempt any landholding from Comprehensive Agrarian Reform Program coverage.
Implementing Rules and Regulations
- DA to issue implementing rules within 90 days from effectivity, consulting agencies and stakeholders.
Separability Clause
- If any provision declared unconstitutional, remaining provisions will remain effective.
Repealing Clause
- Inconsistent laws, decrees, and regulations are repealed or amended accordingly.
Effectivity
- The Act takes effect 15 days after publication in the Official Gazette or in two newspapers of general circulation.