The continued slashing of the mandated P2 billion annual budget of the Sugarcane Industry Development Act (SIDA) by the Department of Budget and Management was described by Senate Majority Floor Leader Juan Miguel Zubiri as an “illegal act”.
From the original budget of P2 billion annually, the SIDA budget in 2020 was reduced to only P67 million, and DBM earlier justified that this was due to underutilization or underspending.
But Zubiri, who co-authored the SIDA law in the Senate, maintained that the budget cut was illegal, “because the law mandates it, (and) they are not following the law.”
SIDA was created to boost the production of sugarcane, and increase the income of sugarcane farmers or planters, and farm workers. The law provides an allocation of P2 billion a year for its implementation.
Of the P2 billion annual fund of SIDA, about P1 billion should go to infrastructure for farm to mill roads, P300 million for credit, P100 million for scholarship, P300 million for the block farm of the agrarian reform beneficiaries, and P300 million for shared facilities program.
Zubiri cited the mandatory Internal Revenue Allotment share of local government units, now known as the National Tax Allocation, adding, “If you take out portion of it and give it to other programs, that is illegal…same as with SIDA.”
Unfortunately, such concern has not been raised before the Supreme Court yet, he added.
With the change in administration next year, Zubiri said he will raise this concern during budget deliberations.
As to the soaring prices of fertilizer, Zubiri said that the national government is eyeing a fertilizer’s subsidy to affected sugarcane growers and other farmers, as part of the short term solutions.
He said the Department of Agriculture is asking the help of Congress to increase its budget so that it can help farmers through fertilizer subsidy and other assistance.
Urea fertilizer now costs more than P2,000 per bag, compared to P800 to P900 four months ago. — GB
