The Departments of Agriculture (DA) and Agrarian Reform (DAR) said on Monday they are studying ways to allow sugar purchase contracts to be used as collateral to help sugarcane farmers secure financing, BusinessWorld reported.
In a joint statement issued by legislators and agriculture officials, the agencies said they would coordinate with relevant government bodies to assess the proposal. The purchase contracts would cover the sale of a specific volume of domestically produced sugar from cane farmers.
The statement was signed by Senate Agriculture Committee Chairman Francis Pancratius N. Pangilinan, House Agriculture Committee Chairman Wilfrido Mark M. Enverga, Agriculture Secretary Francisco P. Tiu Laurel Jr., and officials from the Sugar Regulatory Administration (SRA).
Officials said the financing approach is intended to address falling farmgate prices and limits in refining capacity. They added that assistance programs are also being designed to reach more small-scale farmers, including agrarian reform beneficiaries and communities.
Meanwhile, the DA and the SRA said they will review the importation, use, and market effects of artificial sweeteners. The agencies noted that import programs will be regularly evaluated to ensure policies remain aligned with domestic refining output and current market conditions.
