SENATE OF THE PHILIPPINES 
SIXTEENTH CONGRESS 
First Regular Session 
) 
) 
) 
SENATE 
SENATE BILL NO. 1229 
·13 . I\UG -6 PI', :59 
Introduced by SENATOR JOSEPH VICTOR G. EJERCITO 
EXPLANATORY NOTE 
Traditionally, the Sugar Industry has been given extraordinary support 
by the government through various legislations and financial accommodations, 
primarily because of the critical contribution of the Sugar export industry in 
the country's economic development. Hence, in 1937, the Philippine Sugar 
Administration was created, renamed it as the Sugar Quota Administration in 
1957, followed by the various Presidential Decrees during the Marcos 
Administration and finally the Sugar Regulatory Administration (SRA) 
Executive Order 18 in 1986 was established. 
The volatility and fluctuations of the price of sugar (raw and refined) in 
the world market had resulted in the various phase of government's 
interference over the years. The apparent neglect of the development of the 
Sugar by-products further aggravated uncertainty in the future of the 
sugarcane industry. 
By 2015, the tariff on sugar shall be finally lifted. This scenario has 
spawned numerous reactions of uncertainty from the sugar planters, millers 
and consumers alike. 
It is therefore, incumbent upon our policy-makers to institute measures, 
both by legislation and executive implementation of specific programs and 
projects that will cushion if not counter the possible destabilization effects of 
the 2015 "no-tariff' provision of the sugar cane industry as a whole. 
This bill therefore aims to revitalize and strengthen the Sugar cane 
Industry through a diversification, development, and financing program 
promoting the interests of sugarcane farmers/planters, mills workers and 
consumers as well as contributing to the food security objectives of the 
national government. 


Specifically, programs and projects to diversify sugar cane production 
involving not only raw and refined sugar but also its by-products namely 
bagasse, molasses and filter mud, among others shall be identified, developed, 
promoted and implemented starting 2013. Additionally, funding for these 
programs and projects shall be assured through the establishment of a Sugar 
Development Fund. 
In view of the foregoing, approval of this bill is earnestly sought. 
oG=- ' 
JOSEPH VICTOR G. EJERCITO 


SENATE OF THE PHILIPPINES 
SIXTEENTH CONGRESS 
First Regular Session 
) 
) 
) 
SENATE 
SENATE BILL No.12~9 
'13 
~UG -6 P459 
Introduced by SENATOR JOSEPH VICTOR G. EJERCITO 
AN 
ACT 
STRENGTHENING 
THE 
SUGAR 
CANE 
INDUSTRY 
BY 
ESTABLISHING THE SUGAR CANE INDUSTRY DEVELOPMENT FUND, 
PROVIDING FUNDS THEREFORE AND FOR OTHER PURPOSES 
Be it enacted by the Senate and the House of Representatives of the 
Philippines in Congress assembled: 
SECTION 1. Short Title - This Act shall be known as the "Sugar Cane 
Industry Development Act of 2013". 
SECTION 2. Declaration of Policy. - It is hereby declared the policy of the 
State to provide policy direCtions and support programs / projects for the 
sustained development and diversification of the Philippine sugarcane industry 
inasmuch as the industry provides employment and livelihood to a sizeable 
number of Filipinos in the agricultural sector, contributes significantly to the 
national economy as well as local economies of host provinces, 
generates 
foreign direct investments, earns foreign reserves from exports under the US 
quota and the world market, contributes in maintaining the country's balance 
of trade and is vital for maintaining the food self-sufficiency and energy 
security of the country. 
It is hereby further declared that the development and diversification of 
the sugarcane industry shall be directed primarily to the increase in income of 
the farmers, the enhancement of the productivity of sugarcane planters, sugar 
mills and other manufacturers of products from sugarcane and sugar and the 
improvement in the trading and marketing practices of products derived from 
sugarcane and sugar in terms of administrative, policy directives and financial 
assistance to the sugarcane industry in support of the food security objectives 
and environmental concerns of the national government. 
SECTION 3- Development of the sugarcane industry - The priority 
measures, programs, projects of the sugarcane industry shall be 
focused on the following: 


A. Industry-wide Development 
1. The transformation of the sugarcane industry from the limited "raw 
and refined sugar production" into a diversified industry producing 
bioenergy such as 
biofuels and 
biomass 
power and other 
biochemicals, if financially and technically feasible, primarily through 
the integration of co-products production with sugar processing and 
proper waste disposition / utilization; 
2. The establishment of "Special Economic Zones' for the sugarcane 
industry pursuant to R.A. 7916 (Special Economic Zone Act of 1995), 
and / or the designation or establishment of nuclear farms to be 
called "Agro-Industrial Districts for the Sugarcane Industry" that shall 
be entitled and included as one of the priorities to existing fiscal 
incentives under Book VI of Executive Order No. 226 otherwise known 
as the Omnibus Investments Code of 1987, as amended, as well as 
Sections 4, 5, 6 and others of R.A. 1000 (The Agri-Agra Reform Credit 
Act of 2009), promoting among others, block or corporate farming to 
achieve economies of scale; 
3. The development and promotion programs that are environment-
friendly and will attract investments in the development, production, 
or manufacture of products derived from sugarcane, sugar, molasses, 
cane juice or syrup, crop waste, bagasse, mudpress and other 
products and by-products from sugarcane; 
4. The institutionalization of Good Agricultural Practices (GAP), Good 
Manufacturing Practices (GMP) and marketing programs that will lead 
to competitiveness, market development and market expansion of 
sugar and other sugarcane products and by-products; 
5. The construction of trans-loading ports and improvement of existing 
trans-loading ports for the coastwise transport of sugar and other 
products and by-products derived from sugarcane and sugar in key 
sugarcane-producing areas through integration in the various 
programs / projects of the other government agencies such as the 
National Economic Development Authority (NEDA), Department of 
Transportation and Communication (DOTC) , Department of Public 
Works and Highways (DPWH), Philippine Ports Authority (PPA) and 
others; 
6. The implementation of programs that shall benefit the sugarcane 
planters and workers of the agricultural' and industrial sectors of the 
industry; 
7. The prioritization of farm productivity improvement programs such as 
but not limited to farm mechanization, construction of farm-to-mill or 
to distillery roads, organic farming, irrigation, intensified inter-
cropping, fertilization, and dispersal of high-yielding or improved 
sugarcane varieties; 


8. The sustained financial and technical support in the conduct / 
sponsorship of research, development and extension studies in the 
sugarcane industry, including, among others, acquisition /breeding of 
cane high-yielding or improved varieties, design of farm implements 
and farm mechanization equipment, better and cost-efficient farm 
methodologies / 
technologies / practices, market research and 
promotion techniques, technical/economic viability studies in the 
production of products and by-products from sugarcane & sugar such 
as biochemical and biotechnologies from bagasse and other crop and 
manufacturing wastes, design and studies on appropriate climate 
adaptation and mitigation instruments / technologies and soil fertility 
mapping / assessment. 
B. Regulation of sugar industry 
1. The institutionalization of an effective monitoring and control system 
for the withdrawal, transfer, land transport and coastwise movement 
of imported sugar and sugar premixes; 
2. The institutionalization of electronic quedanning, expansion of the 
quedanning 
system 
to 
molasses 
and 
muscovado 
and 
the 
implementation of the que dan system under R.A. 2137 (Warehouse 
Receipts Law); 
3. The classification of imported sugar and sugar premixes as "C", "D", 
"E", "F" 
(reserve sugar, world market sugar, 
CBW or food 
processors/exporters sugar, bioethanol sugar, respectively) or to any 
other sugar classification which the 8RA may deem necessary to 
stabilize the sugar supply and prices in the domestic market: 
Provided, that the Bureau of Customs (BOC) shall not release 
imported sugar and sugar premixes without the requisite 8RA 
clearances and classification; 
4. The export of refined sugar to the world market or to any country 
where the Philippines has bilateral trade agreement or sugar quota 
shall be VAT zero-rated from the time it is withdrawn or released from 
sugar mills / refinery warehouses including refined sugar withdrawn 
for constructive export to Customs Bonded Warehouse (CBW) 
operators or food processors/exporters of sugar-based products who 
are holders of sugar allocations for import under the CBW program 
and/or duly licensed or registered with 8RA; 
5. The wastewater discharge of sugar mills / refineries that meet the 
standard of the Department of Agriculture for re-use as irrigation 
water or any other agricultural purposes shall be exempted from any 
discharge fees. 


C. Fund management 
The management and proper utilization and disposition of the Sugarcane 
Industry Development Fund established under Sec. 4 of this Act, with special 
emphasis on the industry's contribution to the food security program of the 
national government. 
SECTION 4 -Establishment of Sugar Cane Industry Development Fund 
a. There is hereby established a Sugar Cane Industry Development Fund 
("Sugar Fund") to support the implementation of the deVelopment 
strategy identified in Sec. 3 of this Act. 
b. The Sugar Fund shall be administered by a Secretariat under the 
Sugar Regulatory Administration. The Sugar Fund Secretariat shall be 
composed of 7 members, as follows: 
(a) The Administrator of the Sugar Regulatory Administration as 
Chairperson 
(b) Two Representatives of sugarcane farmers/planters as member 
(c) Two Representatives of sugar millers/refiners as member 
(d) Two Representatives of bioethanol distillers as member 
c. Initially, the Sugar Fund shall be utilized for the following specific 
purposes: 
1. Finance the establishment of Special Economic Zones, nuclear 
farms or Agro-Industrial Sugarcane Districts as provided for in 
Section 3.A.2 of this Act; 
2. Provide financial assistance in the form of grant or guarantee 
fund and other suitable arrangements (e.g. Farmers Trust, 
Special Purpose Vehicles) with the sugarcane farmers, planters, 
millers, refiners and producers of other products from 
sugarcane covering the purchase of seedlings, high-yielding 
cane varieties, pesticides and fertilizer, acquisition of farm 
machinery and implements, construction of farm-to-mill or 
distillery roads, construction of irrigation systems, water 
impounding facilities and water distribution networks; 
3. Provide 
financial 
conduits or 
resources 
for 
industries 
harnessing the efficient use of energy potential of sugarcane 
such as the bioethanol and power cogeneration programs and 
utilization of farm wastes (such as cane trashes and bagasse as 
raw materials for pulp and paper, fiber boards, furfural, animal 
feeds, etc.) and other by-products using chemicals and 
biotechnologies; 
4. Conduct researches or feasibility studies to improve farm / mill 
efficiencies and productivities, identify areas for diversification, 


identify and develop other markets for sugar and its by-
products and co-products particularly in the area of bioenergy 
and the biochemical industry; 
5, Training of mill and SRA personnel with current technologies 
on efficiency, productivity and diversification; and 
6, Finance socio-economic programs for sugarcane farmers 
through planters or farmers cooperatives or associations, 
agricultural/mill /refinery / distillery workers and other 
industrial workers of products directly derived from sugarcane 
including but not limited to the programs under RA 6982 
(Strengthening the Social Amelioration Program in the Sugar 
Industry), 
d, The Sugar Fund shall be constituted out of the existing funds and 
appropriations for the agriculture and fisheries modernization such 
as: 
1, The Agricultural Competitiveness Enhancement Fund (ACEF) -
The Department of Agriculture in consultation with the 
Congressional Oversight 
Committee 
on Agriculture 
and 
Fisheries Modernization (COCAFM), shall allocate annually 
from year 2014-2015 or until all ACEF funds are exhausted 
and shall continue with any extension thereof, a portion of 
ACEF to fund the infrastructure support projects of the 
sugarcane industry such as farm-to-mill or distillery roads and 
irrigation, 
product 
development, 
market 
research 
and 
Research, Development & Extension projects to include all its 
subsectors, namely, farm sector, sugar manufacturing sector, 
bioethanol sector, power generation sector and farm / mill 
support industries sectors, 
2, The General Appropriations for the Agriculture Sector - The DA 
shall provide allocation to the sugarcane industry and all its 
sub sectors from its annual appropriations through the General 
Appropriations Act and / or from the Agriculture and Fisheries 
Modernization Act (AFMA) funds and include the programs / 
projects of the sugarcane industry in its annual expenditure 
prioritization plan for 
ten 
(10) 
successive 
fiscal years 
immediately upon the effectivity of this Act. 
3. All sugarcane-producing local government units (LGUs) shall 
allocate a portion of their Incremental Reformed-Value Added 
Tax-Internal Revenue Allotment (R-VAT-IRA) for infrastructure 
and Research, Development and Extension (R, D & E ) projects 
of the sugarcane industry to include all its sub sectors stated in 
Section 4.c.l. 


SECTION 
5. 
Implementing 
Agency. 
The 
Sugar 
Regulatory 
Administration (SRA) shall implement the programs / projects funded by the 
Sugarcane Fund as recommended by the PMC. The SRA, through the Sugar 
Cane Fund Secretariat, shall formulate a Ten-year Sugarcane Industry 
Development Program (SIDP) which shall be reviewed and updated annually, in 
consultation with the major stakeholders of the sugarcane industry and its 
subsectors such as but not limited to the sugarcane farmers / planters, sugar 
millers / refiners, bioethanol distillers, and others which shall serve as basis 
for the program / project proposals that shall be submitted to the COCAFM, 
the DA, and the LGUs for funding as provided for in Sections 4.c.l, 4.c.2 and 
4.c.3. 
SECTION 6. Separability Clause. -
If any provision of this Act is 
declared unconstitutional, the validity of the remaining provisions hereof shall 
remain in full force and effect. 
SECTION 7. Repealing Clause. -
All laws, decrees, executive orders and 
rules and regulations or part or parts thereof inconsistent with any provision of 
this Act are hereby repealed, modified or amended accordingly. 
SECTION 8. Effectivity Clause. -
This Act shall take effect fifteen (15) 
days after its complete publication in the Official Gazette or in at least two (2) 
newspapers of general circulation. 
Approved,