“The nation that destroys its soil, destroys itself” – Franklin D. Roosevelt
Many are excited of what holds for the rebirth of the Negros Island Region and its rise will surely boost the new region’s economy. Agriculture is one of the major sectors to make a big rebound because of the potential of its major products that are seen to be reinvested, one which is sugarcane, with Negros being the country’s sugar capital of the country.
There is no doubt that the sugarcane’s potential is aplenty and is one of the economic recovery drivers expectedly on a swifter pace, given that the province has now more intimate economic and political partners in Negros Oriental and Siqujor. A well-calculated planning of the region’s economy, putting agriculture in the level of other emerging industries in the region, such as tourism, infrastructure, and BPOs can well be the legacy of the new region’s leaders under the auspices of NIR’s Technical Working Group.
GLOBALLY COMPETITIVE SUGAR
The NIR shall be now considered as the country’s “sugar bowl” producing approximately 60-70 percent of the country’s total sugar output, since Negros Oriental also has sugarcane as one of its major agricultural products. It is also home to three strategic and operational sugar mills, where there are approximately 400,000 hectares of sugarcane with 13 operational sugar mills, six refineries, and at least 5 biofuel plants whose main raw materials are byproducts of sugarcane.
With this potential it pre-requires reinvestments on resources, skills and knowledge, and technology this time on a wider scale, bigger and expansive collaboration necessitating upgrade, improvement and innovation for competitiveness. Sugar mills must infuse bigger capital given their strategic economic value though privately owned collaborating with government and other stakeholders for mill improvements technology specifically targeting sugar output which is only at about 65-70% juice extraction at the maximum. These improvements, however, must consider contingencies for mill workers’ welfare, should there be job displacements such as alternative livelihood and other related jobs in the industry.
Competitiveness encompasses all other aspects of the sugar industry and with NIR the voice of the sugar industry including the small agrarian reform beneficiaries will be expanded and scaled up in terms of advocacy and lobbying.
IMPORTANT POLICY SHIFTS
The house food and agriculture committee hearing and the serious regulation change by SRA are two worthwhile policy shifts to favor the industry at the latest. The restoration of the Sugar Industry Development Act of 2015 budget of P2 billion is a welcome move that simply recognizes the plight of the small sugar holders, primarily the ARB’s. It is very important that the budget is restored and reallocated, mainly for the production aspect, mainly the block farm for land consolidation of the small agrarian reform beneficiaries, who are under privileged and utterly lack the necessary inputs including the technical and financial resources.
Seeking clearance of sugar importers from SRA is another welcome move. The idea seriously contemplated is the result of sugar producers’ complaints of the influx of seemingly “unregulated pre-mixes” that is causing the industry to lose some P10 billion, which is a very significant amount. This is a simple equation of 10 billion pesos of imported sugar is 10 billion loss of local production. These potential policy changes are imperative as soon as possible to avoid more damage to the industry, especially the small and under privileged sections whose livelihood depend solely on sugarcane production.
TOPSY-TURVY AND INEVITABILITIES
The NIR re-establishment creates a bigger force and voice in the industry and is not only to protect the industry’s interest but to contribute to the overall social, economic, and political stability of the region, and the sustainability of the agriculture sector propelled mainly by the sugar industry. Currently, the industry is very topsy-turvy, where stakeholders are always in conflict with the regulating body that shows an ambivalence in its decision-making. This must be significantly if not totally addressed.
The inevitabilities in the industry will directly impact sectors in the industry, with or without the NIR, should imperatives be put in place. Innovation and modernization will impact job security in the supply chain and must have alternatives to protect those who will be affected.
The transition to NIR may be more complicated than it is now but given time, the sugar industry will rise again with a “trickle down” effect. I wish to see the small producers find their way in the mainstream industry.*
