Steps to make sugar sector competitive cited

BACOLOD — The survival of the sugar industry against cheap imports lies in the constant pursuit of better ways to produce sugar, Sugar Regulatory Administration (SRA) chief Rafael Coscolluela said in a recent forum here.

He said the industry can adopt three major initiatives.

sugar mills should expand their resource base wherein, aside from sugar, they can produce power and fuel;
streamlining of the sugarcane delivery system, or delivering canes to the nearest mill, to cope with high transport costs;
having efficient, diversified and integrated farms.
Mr. Coscolluela said the SRA itself is advocating the use of organic fertilizers — against chemical-based ones — and will hold its first in a series of symposiums on organic agriculture here this Oct. 28.

It should not be said that the Philippine sugar industry did not prepare for the scheduled reduction of tariff rate on imported sugar to 5% come 2010, he added.

"Mills have been spending millions of pesos to improve their efficiency," he said during his presentation at the recent 5th Regional Marketing Conference here.

But Filipino sugarcane farmers have inherent disadvantages when pitted against their competitors abroad, he said.

Among others, they do not enjoy the government support that benefits their counterparts in other countries.

This is particularly true in Thailand, where farmers receive export subsidies as well as production and price support.

"We don’t have that kind of support here. The SRA cannot [even] dictate the prices," he said.

Asked if a sugar "farmer [can] survive when 2010 comes," his tongue-in-cheek answer was: "yes, if he will look for a better business, and goes out of sugar."

"[But] we want the farmers to stay in sugar; make sure they remain and be profitable," Mr. Coscolluela said.

"The new breed of [sugar] businessmen or farmer should prepare [to ensure] more profitable times ahead, [and] not [just] continue to wish for the good old times," he said.

If a farmer opts to stop sugarcane farming, he can plant alternative crops like corn that can be harvested in three to four months, and which has relatively bright prospects, he said.

Sweet sorghum, as a feedstock for biofuel, can also be an option as it can be planted for two croppings in a year.

"If you decide to stay [in sugar], be more efficient and productive. We’re seeing many individuals doing this," he said. — NLG
source:bworldonline