BACOLOD CITY — The Sugar Regulatory Administration (SRA) is making the process of availing loans easier for sugarcane farmers through the Socialized Credit Program provided under the Sugar Industry Development Act (SIDA).
This was stressed by SRA Administrator Hermenegildo Serafica during the Business Summit held here Friday. The summit was among the final activities of the five-day 1st Philippine Sugarcane Industry Mechanization Expo held here from March 12 to 16.
On Friday, the SRA launched the SIDA Socialized Credit Program funded by 15 percent of the annual P2-billion fund allocated for the sugar industry.
Serafica said financing is vital to allow sugarcane farmers to overcome pressing industry challenges.
As both the SRA and the Department of Agriculture recognize the lack of sugarcane farm laborers, the challenge is seen to be addressed through farm mechanization, which requires farmers to have the capital to purchase equipment and farm machineries.
Serafica said the SRA continues to work on strengthening the link between the farmers and financiers, including the conduct of Friday’s business summit that was attended by about 300 farmers and representatives of various financial institutions, including banks.
He pointed out that sugarcane farmers need the lowest interest rates and longest payment terms.
Since the SRA through the SIDA cannot provide everything to the farmers, it is better to have more options for financing, he added.
Serafica asked financial institutions to calendar the repayment period during the milling season to allow farmers to pay both the principal loan and interest in more or less five to six months, and not during the off-milling season.
The milling season usually runs between September and June.
When the next crop year resumes, that is the time farmers would pay again, the SRA chief added. (Erwin Nicavera/PNA)
