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Inflation is top Filipino concern — poll

By Kyle Aristophere T. Atienza, Reporter

SPIRALING prices were the top concern of most Filipinos in the last month of a year that saw inflation hit a 14-year high due to surging food costs, according to a poll released by Octa Research on Monday amid expectations of elevated costs of transport and electricity.

The survey of 1,200 adult Filipinos from Dec. 10-14 also showed that the push to amend the country’s 36-year-old Charter does not have popular support.

In the poll, 73% of Filipinos said the government should focus on controlling the increase in the prices of basic goods and services.

Runaway inflation forced global central banks to drive up interest rates to the fastest in decades last year, with the Philippines’ rate hitting a peak of 8.7% year on year in the first month of 2023.

Headline inflation last month declined to 3.9%, but the full-year average for 2023 hit 6.0%, breaching the Bangko Sentral ng Pilipinas’ (BSP) 2%-4% target.

Top concern over inflation was seen in the southern Philippine region of Mindanao, where 82% of adult Filipinos said inflation was the most pressing issue, surpassing all other major regions.

Higher prices have significantly eroded the purchasing power of households and businesses, Michael M. Ricafort, chief economist at Rizal Commercial Banking Corp., said in a Facebook Messenger chat.

He cited the continuing impacts of Russia’s invasion of Ukraine, which started nearly two years ago, on the global prices of oil and other basic commodities.

“Higher prices/inflation had the greatest adverse effect on the poorest of the poor or those with limited budgets,” Mr. Ricafort said.

“The problem is that government has no response to addressing inflation other than to decrease aggregate demand,” Leonardo A. Lanzona, who teaches economics at the Ateneo de Manila University, said via Messenger chat.

Heavily relying on rate hikes decreases inflation “at the expense of higher growth and jobs.”

“At the bottom of all of these difficulties is a decline in human capital investments which can only come from fiscal consolidation,” he added.

Food inflation stood at 10.0% in December, with rice driving the increase as the commodity’s prices increased by 17.9%, the fastest since it hit 22.9% in March 2009.

The fact that the concern for inflation persists “raises a question on the leadership of the incumbent administration and their capacity to listen to and solve pressing problems of the nation given that we are approaching the middle of the term,” Kabataan Party-list Rep. Raoul Danniel Manuel said in a statement.

“For multiple surveys now, high prices and fees remain to be among the most urgent concern of Filipinos,” he said.

President Ferdinand R. Marcos, Jr. earlier this month said his administration will pursue non-monetary measures including plugging supply gaps to stabilize prices this year.

Economists have also cited the impact of El Niño on food and utilities, higher global oil prices, potential increases in transport fares as key risks to the inflation outlook this year.

Mr. Marcos said the El Niño weather pattern, which will likely extend up to the second half of this year, and geopolitical risks could “trample” the optimistic growth outlook for the Philippines, which grew by 5.9% in the third quarter last year.

“Abroad, escalating geopolitical tensions could dampen global trade, tighten global financing, as well as trigger fuel and food shocks that could tow inflation back up,” he said after appointing a new Finance chief, who has been ordered to work with other officials in devising strategies that will tame inflation.

In the Octa survey, controlling inflation was followed by the need to boost people’s access to affordable food (45%), create more jobs (36%), increase wages (34%), and reduce poverty (32%).

There were 1.83 million jobless Filipinos in November last year, down from 2.09 million a month earlier and 2.18 million in November 2022, according to government data.

The Philippines’ poverty rate stood at 22.4% in the first half of 2023, lower than the 23.7% from a year earlier. This was equivalent to a poor population of 25.242 million.

But it was still above pre-pandemic levels “after a year and a half of the economy reopening and despite growth hyped as among the fastest in Asia, Ibon Foundation Executive Director Sonny A. Africa had said.

The government is hoping to bring the poverty rate to single-digit levels by 2028.

Ibon has been citing the need to boost the quality of local jobs by boosting the country’s manufacturing base and agriculture sector.

The need to reduce poverty was followed by the need to enforce the law on all (7%), and reduce the amount of taxes (6%). These were followed by the need to protect overseas Filipino workers, prepare to counter terrorist threats, and stop the abuse of the environment with 4% each. 

‘CHA-CHA’ NOT A MAJOR CONCERN
In the OCTA survey, amending the 1987 Constitution was not seen as a major concern, with only 1% of adult Filipinos believing Charter change (Cha-cha) was an urgent issue.

Mr. Marcos’ allies in Congress are again pushing for cha-cha, which is typically revived by lawmakers every year, with Senate President Juan Miguel F. Zubiri proposing amendments to Articles 12, 14 and 16 of the Constitution.

All the while, a people’s initiative pushing for “Cha-cha” has been tainted with vote-buying allegations, and lawmakers have already filed resolutions seeking an inquiry.

“With numerous reports from the ground of manipulative campaigning where ayuda, money, false promises and threats are used to garner signatures, this survey is damning evidence that there is no real public clamor behind the petition drive for cha-cha,” Mr. Manuel, the party-list lawmaker, said.

“This is indeed a politician’s initiative, not of the people.”

Mr. Marcos last month said efforts were underway to revisit the economic provisions of the 1987 Constitution and domestic laws as his administration seeks to make the country “an investment-friendly place.”

Bernardo M. Villegas, one of the framers of the 1987 Constitution and professor emeritus at University of Asia and the Pacific, earlier told BusinessWorld that “Cha-cha” is no longer necessary to attract foreign direct investments since the country already revised its Commonwealth-era Public Service Act (PSA) to allow full foreign ownership in key domestic sectors.

Mr. Villegas, who had supported moves to amend the Constitution before the passage of the amended PSA, noted that the remaining sectors not allowed for full foreign ownership such as education, media and advertising, are “not vital to high economic growth today.”

The Philippines continues to limit land ownership to Filipino citizens and corporations that are at least 60% Filipino-owned as enshrined in the Constitution.

But Mr. Villegas said foreign investors who are considering large-scale agribusiness investments “do not need to own land.”

“They can lease the land long term as in the nucleus estate model of palm oil in Malaysia and Indonesia.”

In Congress, Albay Rep. Jose Ma. Clemente S. Salceda said Charter change would help address the Philippines’ food security problem.

“The key to boosting food production and reducing food prices in the Philippines is investment in agriculture. The flow of capital to the agriculture sector has been tightly strangled by restrictions in the Constitution and the resulting restrictions in our laws,” he said in a statement in reaction to the Octa poll.

“These restrictions cover ownership, lease, transfer, and even foreign management – leaving foreign investors very little room for involvement in local agriculture,” Mr. Salceda, who also heads the House Ways and Means Committee, added. — with a report from Beatriz Marie D. Cruz

China’s hostility toward fishermen condemned

PHILIPPINE COAST GUARD FILE PHOTO

THE PHILIPPINES on Monday condemned the Chinese Coast Guard anew over its latest move to prevent Filipino fishermen from accessing a traditional fishing ground in the South China Sea.

National Security Council spokesman Jonathan E. Malaya said the actions of the Chinese authorities against Filipino fishermen collecting shells near the south entrance of Scarborough Shoal last Jan. 12 were “provocative” and alarming.

“We were hoping that this 2024, the situation in the West Philippine Sea will be much calmer but here we go again, there was another incident where our fishermen were driven away by the China Coast Guard,” he said in a public briefing. “We are worried and we condemn this latest provocative action.”

On Sunday, the Philippine Coast Guard (PCG) confirmed a report that a China Coast Guard ship deployed a rubber boat to chase a small boat of Filipinos collecting shells in the vicinity of Scarborough Shoal, which is well within Manila’s 200-nautical mile exclusive economic zone.

Citing the account of one of the Filipino fishermen, the PCG said one of the five Chinese personnel forced them to return the shells they had collected to the sea before being allowed to leave.

The fishermen were “subsequently driven away,” PCG spokesman for the West Philippine Sea Jay Tristan Tarriela said in a statement.

The Philippines and China held a bilateral consultation on the South China Sea on Jan. 17, vowing to pursue friendly talks to manage their tensions in one of the world’s most important waterways.

Mr. Tarriela appealed to the Chinese government to complement the agreement with appropriate actions on the ground. — Kyle Aristophere T. Atienza

Lawmaker warns ‘Cha-cha’ may restore foreign bases

MILITANT groups greet the year’s first day of session in Congress with a protest against plans for Charter change (“Cha-cha”) on Batasan Road leading to the House of Representatives in Quezon City on Monday. — PHILIPPINE STAR/MICHAEL VARCAS

By Beatriz Marie D. Cruz, Reporter

A LAWMAKER has sounded the alarm on Congress’ push to amend the 1987 Constitution, saying Charter amendments could also include the removal of a ban on foreign military bases in the country.

“With Charter change, the Marcos Jr. administration will be able to freely allow foreign bases from the US and other countries to enter the Philippines, compromising our national sovereignty,” Assistant Minority Leader and Party-list Rep. Arlene D. Brosas said in a statement on Monday.

Under Article 18, Section 25 of the Charter, it states that foreign military bases, troops, or facilities are not allowed in the Philippines except under a treaty concurred in the Senate, or if required by Congress, ratified by a majority of votes in a national referendum.

“The 1987 Constitution explicitly prohibits foreign military bases in the Philippines, but previous administrations were able to skirt this provision by passing defense treaties like the Visiting Forces Agreement (VFA) and the Enhanced Defense Cooperation Agreement (EDCA),” Ms. Brosas added.

In 1991, the Philippine Senate voted against the renewal of the United States’ military bases in the country.

However, senators in 1999 concurred with the ratification of the VFA, which allows the US to have a constant rotating military presence in the Philippines for training exercises and for the export and import of military equipment.

In 2014, former President Benigno C. Aquino III signed the EDCA to let the US military rotate ships and aircraft for humanitarian and maritime security operations at mutually agreed-upon Philippine military bases.

The agreement builds on the VFA as well as the 1951 Mutual Defense Treaty.

Congress has reopened talks to amend the Constitution to soften economic restrictions and encourage foreign investors to enter the country.

The Senate will conduct its own review of the charter upon the request of President Ferdinand R. Marcos, Jr., Senate President Juan Miguel F. Zubiri said last week.

Mr. Zubiri said changes to the Constitution would be focused on easing foreign restrictions on public utilities, advertising, and education. Senator Ronald M. Dela Rosa said he supports the amendment of the Constitution’s economic provisions but is against Congress voting jointly on Constitutional amendments. Analysts have previously said that congressmen would outnumber senators if Congress voted jointly instead of separately.

CHARTER NOT CAUSE OF POOR EDUCATION, SAYS CONGRESSMAN
During the House’s plenary session on Monday, Pasig Rep. Roman T. Romulo said the Constitution is not to blame for the Philippines’ education crisis. “I don’t think there is anything [from defects in the education sector] that can be traceable for the simple reason that the Constitution, in fact, provides that the highest budget allocation should go to the education sector of our country,” he said.

Mr. Romulo, who heads the House basic education committee, said problems in the education sector lie in the poor implementation of existing laws. “The problem really is implementation, the fragmented implementation of these laws, and sadly, in many instances, the negligence in the implementation of these laws,” he told congressmen.

Several groups are also rallying for charter change (“Cha-cha”) through a people’s initiative (PI) where a television advertisement using the phrase “EDSA-pwera” blames the country’s economic woes on the current Charter, which was ratified after the EDSA People Power revolution that ousted former President Ferdinand E. Marcos.

Signature campaigns supporting PI in exchange for “gifts” are also being distributed allegedly with the involvement of congressmen. Amid reiterating his view that charter change is not the immediate solution to the country’s woes, Senate Majority Leader Joel J. Villanueva said that several provisions of the Constitution may be amended to benefit the public.

“The Constitution cannot simply be tampered, changed or amended, but this doesn’t mean that it’s perfect,” Mr. Villanueva said in a statement in Filipino. “Several provisions may be changed to help the country.”

500 routes to lose jeepneys — PISTON

REUTERS

By John Victor D. Ordoñez, Reporter

MORE than 500 public utility vehicle (PUVs) routes are likely to lose jeepneys and other PUVs once the government bars unconsolidated transport vehicles from operating legally on Feb. 1, a transport group warned on Monday.

In a statement, the Pagkakaisa ng mga Samahan ng Tsuper at Operator Nationwide (PISTON) said the Land Transportation Franchising and Regulatory Board (LTFRB) better to come up with alternatives to improve public transport as it bewailed how thousands of drivers are to lose their jobs due to the government’s PUV Modernization Program (PUVMP).

“It is not right that the government is pushing for this consolidation,” Mody T. Floranda, PISTON national president, said in Filipino. “It is more sensible to just scrap the program altogether and think of better ways to implement a more progressive public transport system.”

Based on LTFRB data as of Jan. 19, 395 jeepney routes and 108 UV Express routes in Metro Manila do not have consolidated units.

There are also 337 jeepney routes that have less than 60% consolidation in the capital region.

The deadline for consolidation was on Dec. 31, which would lead to the phaseout of jeepneys for more modern vehicles. A grace period that allows unconsolidated jeepneys to continue plying their routes will end on Jan. 31.

Earlier this month, the Department of Transportation and the LTFRB asked the Supreme Court to throw out petitions seeking to halt the government’s PUVMP, denying allegations of violating due process for PUV drivers.

“PISTON also urges the Supreme Court and legislators to immediately intervene and prevent this transport fiasco caused by (President Ferdinand R. Marcos, Jr.) and his cohorts in the DoTr and the LTFRB,” the transport group said.

Marcos reactivates El Niño Task Force

By Kyle Aristophere T. Atienza, Reporter

PRESIDENT Ferdinand R. Marcos, Jr. has signed an order reactivating and reorganizing an inter-agency task force in the early 2000s that crafted policies to mitigate the effects of the El Niño weather pattern.

Executive Order (EO) No. 53, signed on Jan. 19, reactivates the El Niño Task Force, which will be headed by the secretary of national defense and monitor the implementation of short- and long-term programs under a national action plan that seeks to mitigate the impacts of El Niño, which began in March and continues to “exhibit signs of intensification.”

The task force may revise and update the Strategic El Niño National Action Plan, which was crafted last year and focuses on water security, food security, energy security, health, and safety.

It should coordinate with concerned agencies to “expedite the completion of all ongoing water infrastructure intended to cushion or mitigate the impacts of El Niño not later than the end of April 2024,” read part of EO 53.

It is tasked with coordinating with the Presidential Communications Office to come up with a massive information campaign to educate the public on El Niño, which brings warmer than usual weather conditions.

The President also ordered the establishment of an El Niño Online Platform, which will serve as a “centralized repository of a wide range of data, research, and information concerning El Niño, such as interactive maps and visualizations, as well as well-informed, data-driven plans and programs.”

El Niño will likely extend up to the second half of the year.

It is expected to lead to a significant increase in power demand, with the Energy department projecting the peak demand to hit 13,917 megawatts (MW) in the Luzon grid, 2,891 MW in Visayas and 2,584 MW in Mindanao.

In related a development, the Baguio Water District (BWD) is constructing 10 deep wells to ensure a steady water supply in the country’s summer capital when El Niño sets in.

BWD General Manager Salvador M. Royeca said each of these wells, funded through loans from the Development Bank of the Philippines (DBP), will produce 140 gallons per minute with a cumulative daily production of 8,000 to 10,000 cubic meters.

Mr. Royeca noted that BWD sourced funds amounting to P300 million from the Office of the President to construct a water catchment basin at the Busol watershed, aiding water supply during peak demand in the summer months.

About 90 percent of the water district’s potable water supply comes from its existing 68 deep wells and Mr. Royeca stressed the city’s need for more due to the growing population and demand. — with a report from Artemio A. Dumlao

New ASF cases hit Occidental Mindoro

REUTERS

THE BUREAU of Animal Industry (BAI) confirmed on Monday the detection of new cases of the African Swine Fever (ASF) in three towns of Occidental Mindoro.

In a statement by the Department of Agriculture (DA), it said that local government have begun surveillance, immediate depopulation of the infected hogs, and implement preventive culling around affected areas.

DA Spokesperson Arnel V. de Mesa said that blood samples send to the BAI confirmed seven cases in San Jose and five in Sta. Cruz, and two cases in the municipality of Rizal as of Jan. 17.

“Pig production in the Oriental Mindoro towns of Naujan and Calapan are now being strictly monitored due to previous ASF cases while the town of Baco is being monitored for the virus,” the DA said.

ASF cases in the area were first detected during the latter parts of the year.

It added that the BAI confirmed an outbreak on Jan. 12 after the reports of unusual swine deaths within several barangays in Sta. Cruz and San Jose.

“Under DA regulations, a town is placed under red zone even if only one barangay tests positive, restricting hog movement within the area,” it said. “Tighter mobility restrictions are imposed if two or more barangays test positive for the virus.”

The DA said that it is waiting for the request of LGUs to activate additional surveillance group and provide the indemnification of slaughtered hogs.

The agency pays P5,000 for each slaughtered hog affected by the ASF, it has a limit of 20 heads. — Adrian H. Halili

Blue Ribbon gets first lady chair

SENATOR PIA CAYETANO is elected new chairperson of the Senate Blue Ribbon Committee on Monday, becoming the first woman to head the committee tasked with investigating cases of graft and corruption involving state officials. — PHILIPPINE STAR/ JESSIE BUSTOS

SENATOR PIA S. CAYETANO has been elected as the chairperson of the Senate Blue Ribbon committee after Senator Francis N. Tolentino formally resigned from the position on Monday. She is the first woman to head the committee.

Senate Majority Leader Joel J. Villanueva announced Ms. Cayetano’s election as the head of the Senate committee on Accountability of Public Officers and Investigations, which looks into cases of graft and corruption involving state officials.

In December, Mr. Tolentino said he was stepping down to honor his vow to serve his post for only a year and a half.

“In fulfillment of a sacred commitment to serve as Blue Ribbon Committee Chairman and Member of the Commission on Appointments for a concise term of one and a half years, I find it both a duty and an honor to uphold the essence of a prior agreement,” he told a news briefing on Dec. 19. 

Ms. Cayetano previously served as the chairperson of the Committee on Sustainable Development Goals, Innovation, and Futures Thinking, which ensures that state programs align with the United Nations goals against poverty and improving health systems through research and development.

“The Senate has been in existence for 106 years providing the checks and balances in a bicameral system, so we’re very honored that Senator Pia Cayetano is the new chairperson,” Senate President Juan Miguel F. Zubiri said in plenary. — John Victor D. Ordoñez

Negros Oriental port project awarded

THE PHILIPPINE Ports Authority (PPA) has awarded the P273-million Bulado port expansion project in Guihulngan, Negros Oriental to WTG Construction and Development Corp.

In a notice of award issued on Jan. 18, 2024, the PPA instructed the company to comply with the requirements within 10 days from the receipt. This includes posting the required performance security in the form and the amount stipulated in the instructions to bidders.

“Failure to enter into said contract or provide the Performance Security shall constitute a sufficient ground for cancellation of this award and forfeiture of your Bid Security,” the PPA said.

Meanwhile, the PPA issued a memorandum order creating a team called the PPA-Hinoba-an Port Services (PPA-HPS) “to ensure continuous delivery of cargo handling (CH) and other related services” at the port of Hinoba-an in Negros Occidental.

“The PPA-HPS shall henceforth manage and operate the CH services at the Port of Hinob-an, with power, functions and duties as may be necessary to enable it to carry out its purposes,” the PPA said.

The guidelines governing the PPA-HPS in managing the port include collection of the existing CH fees, rental rates, and other charges for CH services.

It also includes the disbursement of funds to finance the necessary expenses of operations and inventory of properties in the custody of the CH operator as of takeover date, among others. — Sheldeen Joy Talavera

ICRC provides agriculture aid

AN OFFICER of the International Committee of the Red Cross presents marginalized residents of Cabadbaran City with a donation of post-harvest facilities. — PHILIPPINE STAR/JOHN FELIX M. UNSON

COTABATO CITY — The International Committee of the Red Cross (ICRC) has equipped 107 marginalized families in Cabadbaran City, Agusan del Norte, with post-harvest facilities to enhance their agricultural productivity, which has been adversely affected by armed conflicts in their villages.

Local officials in Cabadbaran City and Agusan del Norte province confirmed that the recipients of the ICRC’s corn sheller and corn mill machinery are residents caught up in deadly clashes between state forces and the New People’s Army (NPA) in recent months.

Rachel T. Malaguit, ICRC’s press relations officer in the country, said on Monday that among those who got post-harvest facilities, placed inside a newly constructed shelter, were residents of Sitio Lusong in Barangay Puting Bato.

Earlier, over 100 of these families received the necessary training from ICRC experts and local government agriculturists. 

The training covered inter-cropping, hillside farming, plant contouring techniques, and crop post-harvest management.

“Armed conflicts cause severe consequences for civilians, such as the loss of jobs and livelihood. We hope that this farm equipment will have a positive impact on the lives of the people and pave the way for them to have a brighter future,” said Ishfaq Muhammad Khan, a senior ICRC official in the Philippines.

Ms. Malaguit added that the local governments of Cabadbaran City and Agusan del Norte played a crucial role in facilitating the distribution of the farm equipment to villagers. — John Felix M. Unson

BoI to allow return of registrants to PEZA after WFH legal opinion

THE Board of Investments (BoI) said it will allow registered business enterprises (RBEs) to voluntary return to the jurisdiction of the Philippine Economic Zone Authority (PEZA).

“The BoI supports the allowing of those who have transferred to BoI to seamlessly be able to go back to their PEZA registration if they prefer it,” Department of Trade and Industry (DTI) Undersecretary and BoI Managing Head Ceferino S. Rodolfo told reporters on Monday.

RBEs seeking to offer employees work-from-home (WFH) arrangements exceeding the PEZA maximum were allowed to transfer their registrations to the BoI last year, as a workaround to tax incentive rules requiring that most of the work performed by RBEs be conducted on premises.

PEZA, as the economic zone regulator, grants incentives tied to the performance of work within the ecozones, while the BoI has no such location-based rules.

“Once ecozones and freeport zones locators are given work flexibility, we also support allowing those who have transferred to BoI to take advantage of this legal solution to go back to PEZA,” Mr. Rodolfo added.

Asked to comment on the legal opinion issued by the Department of Justice (DoJ) on Section 309 of the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act, Mr. Rodolfo said that the opinion only clarifies the law as it is generally understood.

“The DoJ legal opinion essentially confirms the existing mechanism that provides the flexibility that now allows us to continue to attract business process outsourcing (BPO) investments into the Philippines,” he said.

However, he said that the BoI is reiterating the DTI recommendation to the House of Representatives of setting a 30% WFH limit for RBEs in ecozones and freeports.

Jack Madrid, president of the IT and Business Process Association of the Philippines (IBPAP), said that the organization also welcomes the legal opinion.

“(WFH) is not a new topic for the industry. We have become the ‘poster boy’ for work flexibility, but I feel that the industry is speaking for the entire workforce because WFH in some shape or form has affected the future of work, not just the IT-BPM (information technology and business process management) industry,” he said.

However, he said that concerns were raised following the news that came out after the DoJ posted its legal opinion.

“While we welcome the opinion and clarification, the headlines are a bit of a concern because you know when employees read a headline like that, it could discourage them from the industry,” he said.

He said that the industry is facing reputational risk when reports emerge about limits on work flexibility.

“When we have a supply problem and then they read a headline about constraints on work flexibility, this could damage the reputation of our industry and also our country, because our investors also look at headlines and may see an instance of changing the rules,” he added.

Nonetheless, he said the IBPAP is pleased that the government has given IT-BPMs a legal pathway towards 100% WFH arrangement while enjoying the incentives provided under CREATE.

“Most of our investors are in PEZA, and allowing the paper transfer of locators in PEZA gives them the capability to transfer to BoI which in turn gives them 100% work flexibility,” he said.

“This was a very good legal solution to give more flexibility. And I’m happy to receive information that the DoJ opinion will not affect the work arrangements of those currently enjoying 100% work flexibility after the paper transfer to BoI. So, that is certainly a significant clarification,” he added.

In the DoJ legal opinion dated Jan. 3, Justice Secretary Jesus Crispin C. Remulla said that Section 309 of the CREATE Act “requires registered projects under an investment promotion agency (IPA) administering an ecozone or freeport to be exclusively conducted or operated within the geographical boundaries of the zone or freeport.”

“Any project or activity conducted or performed outside the zone or free port shall not be entitled to the incentive under CREATE Act. This locational prohibition does not apply to enterprises registered with the BoI as it does not administer an ecozone or freeport,” Mr. Remulla said.

However, he noted that there are pending legislative measures which seek to allow RBEs in the books of IPAs, such as PEZA, to enter into voluntary WFH arrangements without losing their tax incentives.

“Until the enactment of new legislation amending the law, business enterprises located in economic or freeport zones must continue to conduct their activities within the zone boundaries if they wish to continue availing of their tax incentives under the CREATE Act,” he said.

“Likewise, these enterprises are not prohibited from adopting WFH arrangements but will no longer be eligible to continue enjoying the tax incentives,” he added. — Justine Irish D. Tabile

Direct sugar procurement budget of P5B equivalent to 10-15% of harvest, SRA says

REUTERS

THE Sugar Regulatory Administration (SRA) said that the government’s direct procurement plan with a budget of P5 billion will have the capacity to acquire 10-15% of the sugar harvest directly from farmers.

The funding level for the program implies a capacity to purchase 1.75–1.8 million 50-kilogram bags of sugar, SRA Administrator Pablo Luis S. Azcona said on Monday.

“The P5 billion, for the sugar industry, that’s a very limited budget. It could take out roughly 10-15% of the remaining production,” Mr. Azcona told reporters.

Mr. Azcona said that the current harvest is now at 60% as of Jan. 15. This translates to about 1 million metric tons (MT).

At the start of the harvest, the regulator estimated production of 1.85 million MT during the crop year.

Last week, the government said it allocated P5 billion for the direct purchase of sugar from farmers to close the gap between farmgate and retail prices. The plan was adopted after consulting with the Department of Agriculture, the Philippine International Trading Corp. (PITC), and industry representatives.

He added that PITC will oversee the sugar purchasing, which will either be sold directly to retail markets or used as a buffer stock to ensure adequate supply.

“We are discussing whether PITC will purchase at a higher price. The farmers were hoping for P2,700 to P2,800 (per 50-kilo bag) or better,” Mr. Azcona said.

Current trading prices for raw sugar range from a low of P2,200–P2,300 per 50-kilo bag to a high of P2,500. This is below the P3,000 per 50-kilo bag the regulator projected at the start of the milling season.

He added that purchased sugar could be refined and sold at a retail price of P85 per kilo.

He said the SRA is seeking industry recommendations on how to execute the sugar procurement in a manner that will reduce retail prices.

“We were tasked to do it as quick as we can. The plan is everybody hand-in a written recommendation, and we all sit down within this week to work out all the other suggestions and issues involved,” he said. “We are trying to get this out before the month ends.”

Mr. Azcona added that the SRA will also be meeting with the national price council to address the prevailing high sugar prices.

“We have a very ample supply, and there is no reason for the retail price to remain high,” he added.

Late last year, industry groups called for government intervention to stop the declining trading prices of sugar.

The United Sugar Producers Federation of the Philippines said that raw sugar has declined to P2,300–P2,500 per 50-kilo bag, which is below the cost of production.

Meanwhile, Mr. Azcona said that there has been a decline in the demand for sugar since September.

“There is about a 20% drop in the demand for sugar. We are thinking that manufacturers are finding alternatives to sugar… We are trying to find out. We need to take a look at our numbers again,” he added. — Adrian H. Halili

Farmers allocated P10B in fertilizer, fuel subsidies

DA.GOV.PH

THE Department of Budget and Management (DBM) said over P10 billion was allocated for fuel and fertilizer assistance to farmers in the 2024 budget.

Some P9.561 billion will go to fertilizer discount vouchers, a program run by the Department of Agriculture’s (DA) National Rice Program.

Some P6.161 billion will be used in conjunction with the DA’s hybrid seed program while P3.4 billion will fund fertilizer subsidies for inbred certified seed varieties.

“The fertilizer assistance program is expected to be implemented within the major rice-producing provinces and promote balanced fertilization to increase rice productivity,” the DBM said.

Meanwhile, the remaining P510.4 million will go to fuel assistance, including the operating expenses incurred in the distribution of the assistance. — Luisa Maria Jacinta C. Jocson