NFSP has initiated and pursued numerous policy proposals and programs and embarked on certain activities designed to protect the interests and promote the welfare of both sugar producers and workers, as follows:

Policies: Land Reform | Sugar Tariff | US Sugar Export | Sugar Importation | Sugar Smuggling | Amendment to the Sugar Restitution Law | Importation of Fertilizer

Programs: NFSP Multi-Purpose Cooperative | NFSP Sugar Workers Foundation, Inc. | Technical Skills Training Center

Land Reform

1. Exemption of Landbank Bonds interest earnings from the 20% withholding tax. Acting upon NFSP's representation, Rep. Jose Crlos V. Lacson, 3rd District of Negros Occidental, filed H.B. No. 5093 seeking said exemption.
2. Campaigned against H.B. No. 720 introduced in the lower house of Congree by Rep. Tomas M. Dumpit, 2nd District, La Union providing for certain amendments to the Labor Code of the Philippines to include seasonal farm workers in the definition of the term "regular employment," thereby qualifying them as beneficiaries of land distribution under RA 6657 (CARL).
3. Reversal of the compensation payment scheme in the implementation of the CARP from the present 30% cash 70% Land Bank Bond with a 10-year maturity to 70% cash 30% Land Bank Bond with a 10-year maturity.
4. Pursued through a series of conferences with the DAR panel designated by DAR Secretary Hernani Braganza various NFSP proposals, among which is for DAR to allow alternative schemes in lieu of land transfer in the implementation of the CARP, such as profit-sharing and leaseback arrangements
5. Filing of a Petition for Certiorari and Prohibition before the Supreme Court.
6. Made representations with the DAR secretary regarding complaints submitted to NFSP by its planters' association and cooperative members arising from the application, implementation and enforcement of the land reform program.
7. Study, formulate and submit position papers in support of or against various proposed legislations seeking to amend the land reform law filed both in the Senate and House of Representatives.

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Sugar Tariff

1. Modification of the country's Out-Quota tariff commitment under the GATT-UR, as implemented under Sec. 401 of the Tariff and Customs Code, for sugar imports from non-ASEAN countries, to restore it to at least 80%.
   
   From the previous tariff rate of 80%, it was reduced to the present tariff of 65% effective last July 1, 1999. It will be further reduced to only 50% by the year 2003.
2. Reclassification of sugar under the AFTA Common Effective Preferential Tariff (CEPT) scheme applicable to sugar imports from ASEAN countries under Sec. 402 of the Tariff and Customs Code from the present Temporary Exclusion List (TEL) to a highly sensitive commodity to delay to 2010 the lowering of tariff for said sugar imports from the present 65% to a tariff rate ranging only from 0% to 5% by the year 2003.
3. Vigorously campaigned against the reduction in tariff of fructose importations provided under EO334 issued on January 3, 2001

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US Sugar Export

NFSP had sent representatives, together with those of SRA and the other national sugar federations, to Washington D.C., USA to work for the retention of the Philippines 13.5% share in the overall U.S. sugar export quota allocation whose reduction or total loss was threatened by the increase in the share of Mexico as a signatory of the North American Free Trade Agreement (NAFTA).

This yielded positive results with the passage of the U.S. Farm Security and Rural Investment Act of 2002 which, among others, extended the U.S. sugar import program up to 2007, thereby assuring the Philippines that the U.S. will continue to source 13.5% or even more of its annual sugar import requirements from the Philippines at a premium price at least up to the year 2007.

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Sugar Importation

NFSP has always been a strong advocate of rationalization in the importation of sugar. The following is NFSP's position:

1. That there should always be prior consultations by SRA with the sugar producers, both planters and millers, through their national federations, regarding OUT-QUOTA and IN-QUOTA (MAV) sugar importation.
2. That OUT-QUOTA sugar importation only be resorted to if there is an actual shortage in sugar production.
3. That the OUT-QUOTA importation should only be limited to the actual shortage as properly determined by both the SRA and the sugar producers.
4. That only the sugar producers should be allowed to import sugar through their marketing arms, both IN-QUOTA (MAV) and OUT-QUOTA, so that whatever benefits that may be derived from the importation could be shared by them, considering that they are also the ones affected by whatever adverse consequences that may result from sugar importation.
5. That SRA should hold all imported sugar in reserve to be released only gradually to the domestic market as the need arised in order to properly regulate both supply and demand, thereby stabilizing sugar prices.
6. That a lien for sugar workers' social amelioration should be included among those to be imposed on imported sugar as additional benefits for labor.

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Sugar Smuggling

Due to the rampant smuggling of sugar, NFSP has looked into certain administrative procedures in the Bureau of Customs in the handling of smuggled sugar that contribute more to the disruption of local sugar supply and destabilize sugar prices.

Among the findings of the NFSP study was the lack of coordination by the Bureau of Customs with the SRA in forfeiture cases instituted by the Bureau of Customs against seized shipments of smuggled sugar.

In view hereof, NFSP made a strong representation with both the Bureau of Customs and SRA with the following demands:

1. That the Bureau of Customs, as a matter of policy mandated by EO 18, shall always coordinate with SRA in the handling of smuggled sugar to protect the interests of local sugar producers.
2. That in case of redemption of seized smuggled sugar by the claimant, the determination of their domestic market value shall be done by SRA and not by an other agency of the government, such as the NFA, in order to insure a more realistic price assessment.
3. That the release of the redeemed sugar for sale to the domestic market shall be subject to the regulatory powers o SRA in order to prevent the entry of unregulated sugar and insure such balance of sugar supply and demand in the domestic market as may be reasonable profitable to sugar producers and fair to consumers as provided under EO 18.
4. That the intervention of the SRA and/or the sugar producers as the major stakeholders in the sugar industry in forfeiture cases of seized smuggled sugar shall be allowed to protect their interests.

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Amendment to the Sugar Restitution Law

One of the mandates of the Sugar Restitution Law under RA 7202 is the distribution to sugar producers of ill-gotten wealth from the sugar industry which may have been recovered by the Presidential Commission on Good Government (PCGG) as part of the restitution of their sugar losses during the Marcos regime.

The major difficulty encountered by the sugar industry in seeking the implementation of this mandate is the required judicial determination of whether or not certain assets recovered by PCGG were ill-gotten from the sugar industry before they can be declared eligible for distribution to sugar producers.

It is for this reason that NFSP has made strong representations with all the congressmen and senators from all the sugar producing provinces in the country to work for the necessary amendment to RA 7202 for the purpose of doing away with such a cumbersome judicial process and thus make the pertinent provision of RA 7202 a living reality.

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Importation of Fertilizer

Among the indispensable requirements in sugar production is fertilizer whose prohibitive cost has been a major problem to sugarcane planters.

In order to avail of the cheaper cost of imported fertilizer, representations were made with the Secretary of Agriculture who granted NFSP's request for an import allocation of 3,000 metric tons of Ammonium Sulfate (21-0-0) fertilizer (Mitsubishi brand) for its planters' assocations and cooperative members under the KR II program of the National Agricultural and Fisheries Council (NAFC) at a cheaper price.

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NFSP Multi-Purpose Cooperative

To provide more services to NFSP's planters' associations and cooperative members, NFSP has organized its own multi-purpose cooperative in order to avail of the tax exemptions and other benefits and privileges by the government to cooperatives.

The NFSP multi-purpose cooperative could also readily provide services to its planters asssociations and cooperative members especially in the procurement and importation of farm equipment, fertilizers and other farm requirements, as well as in sugar importation whenver the need arises.

The NFSP multi-purpose cooperative was registered with the Cooperative Development Authority on August 28, 2002. Its membership is composed of all NFSP's planters' association and cooperative members themselves.

The Board of Directors and Officers are as follows:

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NFSP Sugar Workers Foundation, Inc.

To be of further service to the planters/members of the associations and cooperatives affiliated with NFSP and their sugar workers, NFSP has formally organized the NFSP Sugar Workers Foundation, Inc., which was registered with the Securities and Exchange Commission, Iloilo City Regional Office, on September 20, 2000.

The following are the members of the Board of Directors and Officers:

Board of Trustees:

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Technical Skills Training Center

NFSP has started a pilot skills training project in 1999 which graduated 300 sugar workers in welding, steel fabrication, electrical trade, plumbing and auto-diesel mechanics, 90 of whom are now gainfully employed as overseas contract workers, while a good number of them have been promoted to high-paying positions in sugar farms. Some have opened up their own shops.

The success of NFSP's maiden skills training project has encouraged its Board of Directors and planters' associations and cooperative members to embark on a more comprehensive technical, vocational and technological program.

For this purpose, NFSP has constructed the NFSP TECHNICAL SKILLS TRAINING CENTER right within its own compound at Barangay Alijis, Bacolod City, which is now adequately equipped with training equipments, materials and supplies. The Center is being operated by the Foundation in collaboration with the Technical Education Skills Development Authority (TESDA) and offering various short and long term courses in technical, vocational and technological education for the benefit not only of sugarcane farm workers and their dependents, but also of out-of-school youth as part of NFSP's corporate social out-reach program.

The formal training program at the new building was started last October 21, 2002 with 80 students in Computer Education and 40 students each in Automotive and Welding and Electrical courses.

The Center itself was inaugurated last November 8, 2002, NFSP's 72nd Charter Anniversary, with no less than Senate President Franklin Drilon, Senator John H. Osmeña and some congressmen and other top government officials, both national and local, as well as leaders in the sugar industry, including labor organizations, in attendance as guests.

This is the first and the only training center in the country operated by a national sugar federation for the benefit of sugarcane farm workers and their dependents.

Financial support for the Center is being provided by the Department of Labor and Employment (DOLE), through the Bureau of Rural Workers (BRW) and the Sugar Tripartite Council (STC), from the Socio-Economic Project Fund (SEPF) under RA 6982, otherwise known as the Social Amelioration Act for Sugar Workers, authored by no less than the late Bacolod Congressman Romeo G. Guanzon, former NFSP president.

Its initial operating fund was also augmented from an allocation of P2.4 million granted by Senator John H. Osmeña from his Countrywide Development Fund. Fund releases are being coursed through the TESDA.

The Center is the realization of NFSP's belief that to be an effective partner in sugar production, the quality of life of sugar workers should be upgraded to such a level as may be in keeping with their dignity as human beings.

Giving flesh to this dream has been NFSP's vision since its incorporation in 1930, and since then, the socio-economic well-being of sugar workers has consistently been among its priorities in the pursuit of its corporate goals.

The Center is a missionary project. But this is only the beginning of NFSP's mission for sugar workers. This is a long-range project and so much has yet to be done. Along the way we will be encountering a lot of difficulties but NFSP is determined to forge ahead despite all odds.

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