“Be careful who you trust, salt and sugar look the same” – Anonymous
For more than a century sugarcane has been the lifeblood of Negros Occidental. It can be said that it is the main factor that developed and enriched the island’s economy, influenced local culture, and put the island in the world map. Arguably, sugarcane was the economic driver of the province but is now at high risk and may become history. The industry has been beset with problems, and some were even thought to be irreparable. In fact, it ruptured the socio-economic and political state of the island in the 1980’s. To date, the current milling year is no different but is believed to be resolved if only decision-makers step in on time.
‘CULPRIT’
The current milling year is quite a harrowing experience for the sugarcane producers, especially the marginal farmers, as sugar prices plummeted down dubbed as “price collapse”. At 2,100 pesos per 50 lkg, the lowest in 6 years, it is worsened by inflation, causing farm inputs’ prices to rise resulting in losses to production, or breakeven at the most. This is painful to the socio-economic state of the marginal sugar cane farmers and small agrarian reform beneficiaries whose main livelihood is sugarcane production. Another factor attributed to it is the global and domestic over production that caused influx of cheaper imports while domestic production agonizes in the market because of its higher comparative price. Last year sugar import was placed at 300,000 metric tons ceiling. Further, many opine that government neglect or inaction is one significant that worsens the problem. Such impacts of the “price collapse” is painfully evident among small sugar producers and ARBs.
But in the spirit of fairness, let us deal with the problem with prudence with a basis not opinionated or speculative. First is the policy constraint, not simply neglect. The government sets import with little or no consideration to the volume projection of every forthcoming milling season. Next is the obligated US quota regardless if there is under or over production. Our annual export to the United States is at 145,000 metric tons to be reduced to 100,000 metric tons this year to balance over production. At a glance, the industry influences the market and the economy, but is deemed a non-factor in the decision making process necessitating intervention. Lastly, government interventions often come late, which sometimes complicates the problem.
REELING IMPACTS
The debate continues whether sugar is a sunset industry or not. But, undeniably, a significant number of Negrenses continue to depend on the industry. Livelihood of the small sugarcane producers, agrarian reform beneficiaries, and the sugar mills, including their workers numbering to almost a million, depend on the sugar industry.
One of the major impacts that stands out is the significant reduction in the margins vis-à-vis production cost. Next is the threat of significant cuts in wages or loss of jobs of “sacadas.” And, sugar as an essential ingredient of food products contributes to inflation, resulting in price increases. One peculiar impact of the problem in the manufacturing sector is that it may trigger operational destabilization directly affecting the economy. In hindsight, sugarcane is consistently one among the top three to five major agricultural products contributing 100 to 120 billion pesos annually.
CALLS AND REMINDERS
We almost lost count of calls and recommendations presumed to have fallen to deaf ears. It is unfair to outrightly dismiss that the government neglects the worsening socio-economic plight of the sectors largely dependent in the industry. Initiatives and measures were taken signifying that the government is doing its part but whether it is enough or not, the debate goes on and on. What is generally observed is that there seems to be a lackluster effort from the government. In short, little has been done.
These calls were not made as mere reminders but they come with recommendations. These recommendations are not even new but their implementation remains to be a big challenge. Establishment of a price stabilization fund, crop diversification, and other pertinent safety nets in protection of the marginalized sugar workers are just some of the major recommendations.
INTERVENTION
The sugar “price collapse” is not a mere economic issue but a deep structural and systemic problem embedded in governance that needs long-term approach and intervention that must start with highly implementable import and export policies as a major safety net. Pertinent agencies mainly responsible for the industry must be entrusted to people with political will with experience and, most importantly, look out for the welfare of the underprivileged sectors whose livelihood is mainly dependent on the industry.*
