Republic of the Philippines
CONGRESS OF THE PHILIPPINES
Metro ManilaSixteenth Congress
Second Regular SessionBegun and held in Metro Manila, on Monday, the twenty-eighth day of July, two thousand fourteen.
REPUBLIC ACT NO. 10659
AN ACT PROMOTING AND SUPPORTING THE COMPETITIVENESS OF THE SUGARCANE INDUSTRY AND FOR OTHER PURPOSES
Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled:
Section 1. Short Title. – This Act shall be known as the "Sugarcane Industry Development Act of 2015".
Section 2. Declaration of Policy. – It is hereby declared the policy of the State to promote the competitiveness of the sugarcane industry and maximize the utilization of sugarcane resources, and improve the incomes of farmers and farm workers, through improved productivity, product diversification, job generation, and increased efficiency of sugar mills.
For these purposes, the State shall: (a) establish productivity improvement programs; (b) provide the needed infrastructure support; (c) enhance research and development of other products derived from sugar, sugarcane, and their by-products; (d) provide human resource development and...
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Republic Acts
Sugarcane Industry Development Act of 2015
Republic Act No. 10659
Summary of the Sugarcane Industry Development Act of 2015
Declaration of Policy (Section 2)
- Promote competitiveness of the sugarcane industry and maximize utilization of sugarcane resources.
- Improve incomes of farmers and farm workers through improved productivity, product diversification, job generation, and increased efficiency of sugar mills.
- Establish productivity improvement programs, provide infrastructure support, enhance research and development, provide human resource development and extension services, and provide financial assistance to small farmers.
Productivity Improvement Programs (Section 3)
- Block Farm Program:
- Consolidation of small farms into larger farms of at least 30 hectares within a 2-kilometer radius. (Section 3(a))
- Provide common service facilities, grants, technology adoption, training, and other support activities. (Section 3(a))
- SRA to develop guidelines, provide technical assistance, monitor development, recommend graduation or cessation, and implement certification system. (Section 3(a))
- Sugar mills, bioethanol distilleries, and other markets to provide priority access to SRA-certified block farms. (Section 3(a))
- Farm Support Program:
- Socialized credit through Land Bank of the Philippines for production inputs, farm machineries, and implements. (Section 3(b)(i))
- Farm management, technical assistance, and professional services from SRA, DA, DAR, DOLE, TESDA, SUCs, and NGOs. (Section 3(b)(ii))
- Farm Mechanization Program:
- Introduce and expand use of agricultural machineries and equipment. (Section 3(c))
- Formulate and implement a Sugarcane Farm Mechanization Program. (Section 3(c))
- Support establishment and operation of Agri-fisheries Machinery and Equipment Service Centers. (Section 3(c))
- Research, development, and extension program for sugarcane farm mechanization and engineering. (Section 3(c))
- Socialized credit facility managed by Land Bank of the Philippines. (Section 3(c))
Research and Development (Section 4)
- SRA, in coordination with DOST, SUCs, and private sector, to intensify research on sugarcane varieties, pest control, farming and milling technologies, soil analysis, weather monitoring, sugar consumption, and other viable products from sugarcane.
- DA and DOST to assist SRA in improving crop forecasting and monitoring activities.
Extension Services (Section 5)
- Extension services to be provided by SRA, MDDCs, DA, DAR, SUCs, private sector, and NGOs.
- Services include technical assistance, advice, tests, propagation, dissemination of high-yielding varieties, and operation of demonstration farms.
- MDDCs may develop linkages with NGOs, people's organizations, and LGUs, and secure funding from private sector sources.
Human Resources Development (Section 6)
- DOLE, in collaboration with SRA, CHED, TESDA, PRC, and private sector, to formulate and implement an HRD Master Plan for the sugarcane industry.
- Plan to include capacity building, skills training, institutional strengthening, scholarship program, capability training, competency standards and training regulations, and upgrading of facilities and faculty development.
Infrastructure Support (Section 7)
- Construction and improvement of transloading ports for export or transport of sugar and other products. (Section 7(a))
- Construction and rehabilitation of farm-to-mill roads. (Section 7(b))
- Construction of irrigation facilities, pump and pressurized irrigation systems, rain capture, and water impounding facilities. (Section 7(c))
- Utilization of wastewater discharge from mills, refineries, or distilleries for irrigation, exempt from wastewater charges. (Section 7(c))
Sugar Supply Monitoring System (Section 8)
- SRA to establish a supply chain monitoring system from sugarcane to sugar at the retail level.
- Registration required for sugarcane farmers, mills, distilleries, sugar traders, warehouses, bag/sack manufacturers, and cane hauling/harvesting service providers.
- SRA to develop a sugarcane industry database.
Classification and Regulation of Supply of Sugar (Section 9)
- SRA to classify imported sugar according to its appropriate classification when domestic production is sufficient.
- Bureau of Customs to require importers/consignees to secure classification from SRA prior to release.
Value-Added Tax (VAT) Zero-Rated on Refined Sugar for Export (Section 10)
- VAT zero-rated on refined sugar withdrawn from warehouses for actual physical export to the world market.
- Refined sugar defined as sucrose content of 99.5° and above polarimeter reading.
- Raw sugar defined as sucrose content less than 99.5° polarimeter reading.
- Bureau of Internal Revenue to issue necessary regulations.
Mandated Appropriations (Section 11)
- DBM to include an initial aggregate amount of ₱2 billion annually in the President's program of expenditures, starting 2016.
- Allocation: 15% for block farm grants, 15% for socialized credit, 15% for research and development, 5% for scholarship grants, and 50% for infrastructure support.
- SRA to conduct prior consultation with industry stakeholders for identification and prioritization of programs and projects.
- For the current year, DBM to include ₱2 billion in a supplemental budget.
Non-Exemption from CARP Coverage (Section 12)
- Nothing in this Act shall exempt any landholding from CARP coverage.
Implementing Rules and Regulations (Section 13)
- DA, in consultation with concerned agencies and stakeholders, to issue implementing rules and regulations within 90 days from effectivity of the Act.
Separability Clause (Section 14)
- If any provision is declared unconstitutional, the remaining provisions shall remain in full force and effect.
Repealing Clause (Section 15)
- All laws, decrees, executive orders, and rules and regulations inconsistent with this Act are repealed, modified, or amended accordingly.
Effectivity (Section 16)
- This Act shall take effect 15 days after its publication in the Official Gazette or in at least two newspapers of general circulation.
Declaration of Policy (Section 2)
- Promote competitiveness of the sugarcane industry and maximize utilization of sugarcane resources.
- Improve incomes of farmers and farm workers through improved productivity, product diversification, job generation, and increased efficiency of sugar mills.
- Establish productivity improvement programs, provide infrastructure support, enhance research and development, provide human resource development and extension services, and provide financial assistance to small farmers.
Productivity Improvement Programs (Section 3)
- Block Farm Program:
- Consolidation of small farms into larger farms of at least 30 hectares within a 2-kilometer radius. (Section 3(a))
- Provide common service facilities, grants, technology adoption, training, and other support activities. (Section 3(a))
- SRA to develop guidelines, provide technical assistance, monitor development, recommend graduation or cessation, and implement certification system. (Section 3(a))
- Sugar mills, bioethanol distilleries, and other markets to provide priority access to SRA-certified block farms. (Section 3(a))
- Farm Support Program:
- Socialized credit through Land Bank of the Philippines for production inputs, farm machineries, and implements. (Section 3(b)(i))
- Farm management, technical assistance, and professional services from SRA, DA, DAR, DOLE, TESDA, SUCs, and NGOs. (Section 3(b)(ii))
- Farm Mechanization Program:
- Introduce and expand use of agricultural machineries and equipment. (Section 3(c))
- Formulate and implement a Sugarcane Farm Mechanization Program. (Section 3(c))
- Support establishment and operation of Agri-fisheries Machinery and Equipment Service Centers. (Section 3(c))
- Research, development, and extension program for sugarcane farm mechanization and engineering. (Section 3(c))
- Socialized credit facility managed by Land Bank of the Philippines. (Section 3(c))
Research and Development (Section 4)
- SRA, in coordination with DOST, SUCs, and private sector, to intensify research on sugarcane varieties, pest control, farming and milling technologies, soil analysis, weather monitoring, sugar consumption, and other viable products from sugarcane.
- DA and DOST to assist SRA in improving crop forecasting and monitoring activities.
Extension Services (Section 5)
- Extension services to be provided by SRA, MDDCs, DA, DAR, SUCs, private sector, and NGOs.
- Services include technical assistance, advice, tests, propagation, dissemination of high-yielding varieties, and operation of demonstration farms.
- MDDCs may develop linkages with NGOs, people's organizations, and LGUs, and secure funding from private sector sources.
Human Resources Development (Section 6)
- DOLE, in collaboration with SRA, CHED, TESDA, PRC, and private sector, to formulate and implement an HRD Master Plan for the sugarcane industry.
- Plan to include capacity building, skills training, institutional strengthening, scholarship program, capability training, competency standards and training regulations, and upgrading of facilities and faculty development.
Infrastructure Support (Section 7)
- Construction and improvement of transloading ports for export or transport of sugar and other products. (Section 7(a))
- Construction and rehabilitation of farm-to-mill roads. (Section 7(b))
- Construction of irrigation facilities, pump and pressurized irrigation systems, rain capture, and water impounding facilities. (Section 7(c))
- Utilization of wastewater discharge from mills, refineries, or distilleries for irrigation, exempt from wastewater charges. (Section 7(c))
Sugar Supply Monitoring System (Section 8)
- SRA to establish a supply chain monitoring system from sugarcane to sugar at the retail level.
- Registration required for sugarcane farmers, mills, distilleries, sugar traders, warehouses, bag/sack manufacturers, and cane hauling/harvesting service providers.
- SRA to develop a sugarcane industry database.
Classification and Regulation of Supply of Sugar (Section 9)
- SRA to classify imported sugar according to its appropriate classification when domestic production is sufficient.
- Bureau of Customs to require importers/consignees to secure classification from SRA prior to release.
Value-Added Tax (VAT) Zero-Rated on Refined Sugar for Export (Section 10)
- VAT zero-rated on refined sugar withdrawn from warehouses for actual physical export to the world market.
- Refined sugar defined as sucrose content of 99.5° and above polarimeter reading.
- Raw sugar defined as sucrose content less than 99.5° polarimeter reading.
- Bureau of Internal Revenue to issue necessary regulations.
Mandated Appropriations (Section 11)
- DBM to include an initial aggregate amount of ₱2 billion annually in the President's program of expenditures, starting 2016.
- Allocation: 15% for block farm grants, 15% for socialized credit, 15% for research and development, 5% for scholarship grants, and 50% for infrastructure support.
- SRA to conduct prior consultation with industry stakeholders for identification and prioritization of programs and projects.
- For the current year, DBM to include ₱2 billion in a supplemental budget.
Non-Exemption from CARP Coverage (Section 12)
- Nothing in this Act shall exempt any landholding from CARP coverage.
Implementing Rules and Regulations (Section 13)
- DA, in consultation with concerned agencies and stakeholders, to issue implementing rules and regulations within 90 days from effectivity of the Act.
Separability Clause (Section 14)
- If any provision is declared unconstitutional, the remaining provisions shall remain in full force and effect.
Repealing Clause (Section 15)
- All laws, decrees, executive orders, and rules and regulations inconsistent with this Act are repealed, modified, or amended accordingly.
Effectivity (Section 16)
- This Act shall take effect 15 days after its publication in the Official Gazette or in at least two newspapers of general circulation.