Sugar purchase contracts could be deemed eligible collateral for cane farmer financing

THE departments of Agriculture (DA) and Agrarian Reform (DAR) said on Monday that they are exploring how to make sugar purchase contracts acceptable as collateral for the financing of sugarcane farms.

“The DA and DAR, in coordination with relevant agencies, will assess both the use of purchase contracts as collateral to enhance farmer financing,” according to a joint statement from legislators and agriculture officials.

The purchase contracts will involve the sale of a certain volume of domestic sugar from cane farmers.

The joint statement was signed by Senate Agriculture chairman, Senator Francis Pancratius N. Pangilinan, House Agriculture panel chairman Rep. Wilfrido Mark M. Enverga, Agriculture Secretary Francisco P. Tiu Laurel, Jr., and officials from the Sugar Regulatory Administration (SRA).

The financing scheme was pitched as a means of addressing declining farmgate prices and refining constraints.

Assistance programs are also being configured to reach more small farmers, they said.

The targeted farmers include agrarian reform beneficiaries and agrarian reform communities.

The DA and the SRA said they will also review the import, use, and market impact of artificial sweeteners.

“DA and SRA will periodically review import programs to ensure that policies are aligned with actual domestic refining output and prevailing market conditions,” it said. — Adrian H. Halili