Market Competitiveness of the Sugar Industry

December 28, 1976

LETTER OF INSTRUCTIONS NO. 490-A

WHEREAS, it is necessary for Philippine sugar to be competitive in the world market; CAETcH

WHEREAS, market competitiveness could be achieved only by increasing productivity in the farm as well as the mill and by reducing the cost of production;

WHEREAS, the absence of adequate irrigation and drainage facilities and the deplorable condition of roads in most sugarcane districts contribute to low production and high operating cost in the farms;

WHEREAS, comprehensive national programs on irrigation and drainage as well as infrastructure development are needed in order to reduce operating cost and increase productivity in the sugar industry;

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Republic of the Philippines, do hereby order the following:

1. The Departments of Public Highways and Public Works, Transport and Communications, in coordination with the Philippine Sugar Institute, the millers and the sugarcane planters shall undertake a study of the infrastructure requirements, particularly roads and bridges, in the entire sugar industry and shall prepare a corresponding sugar infrastructure program. Among others, the following must be given particular consideration:

a) Criteria for establishing construction priorities among road networks within a district and among districts.

b) The possibility of encouraging private participation, especially on the part of the mills and planters' association, by providing equipment assistance and reasonable tax credits for the cost of infrastructure projects within the programs initiated by them.

c) Establishment of essential long-term road repair and maintenance programs. HICcSA

2. The National Irrigation Administration in coordination with the Philippine Sugar Institute, millers and sugar planters shall prepare a national irrigation and drainage program for the sugar industry. The program planning process must consider among others the following:

a) Possibility of large gravity irrigation and drainage systems serving several farms or zones.

b) Possibility of multi-purpose projects that will supply not only irrigation water but electricity as well.

c) Development of multi-purpose small farm ponds.

3. The Secretary of Finance and the Director-General of NEDA are directed to locate sources of finance for both the infrastructure and the irrigation and drainage programs for the sugar industry, if possible, through long-term loans from external lending institutions.

This Letter of Instructions shall take effect immediately.

DONE in the City of Manila, this 28th day of December, in the year of Our Lord, Nineteen Hundred and Seventy-Six.