PROTECTING COTTAGE INDUSTRIES WITH EXCLUSIVITY RIGHTS

PROTECTING COTTAGE INDUSTRIES WITH EXCLUSIVITY RIGHTS

What happened to the National Cottage Industries Development Authority (NACIDA)? I know it was abolished, but was it replaced? Some online sources suggest that the Cottage Industry Technology Center (CITC) was established to take its place under the Department of Trade and Industry (DTI). However, a visit to the DTI website yields no evidence of CITC being one of its attached agencies. Even more puzzling is the fact that the CITC has no official website, and a private company seems to have taken over its previous online domain.

The story doesn’t end there. The same unfortunate fate seems to have befallen the Technology and Livelihood Resource Center (TLRC). Like NACIDA, it was abolished without any clear successor. The absence of these agencies is a double whammy for the growth of cottage industries in the Philippines. Their abolition left a significant gap in the support system those small-scale entrepreneurs once relied on.

Could it be that the Bureau of Small and Medium Enterprise Development (BSMED) is now serving as the de facto replacement for NACIDA and TLRC? BSMED's functions do overlap somewhat with those of the abolished agencies. But perhaps the real issue lies in definitions. Are cottage industries synonymous with MSMEs? Or are they strictly limited to micro and small businesses?

India offers an interesting model to consider. Certain cottage industries there are exclusively reserved for micro and small enterprises, protecting them from competition with medium and large-scale corporations. This legal protection ensures that small producers can maintain their market niche and survive against larger competitors.

Does the Philippines have a similar system? While some laws do support micro and small businesses, it remains unclear whether specific industries are reserved exclusively for them. Previous attempts to pass stronger laws to protect cottage industries were halted in Congress, possibly due to resistance from big business interests. This begs the question: Should we revive those legislative efforts to create clear protections for cottage industries?

Furthermore, the Cooperative Development Authority (CDA) and BSMED could work more closely to provide targeted support to cottage industries. After all, many cottage industries operate as cooperatives. Yet, it remains uncertain whether BSMED even considers cooperatives as part of its mandate.

There also appears to be a gap in BSMED’s focus. Its name implies a priority on small and medium enterprises, with no explicit mention of micro enterprises. Could it be that micro enterprises are being left behind? This alone might justify the revival of NACIDA and TLRC to specifically cater to the needs of micro enterprises and cottage industries.

Additionally, a comprehensive new law could be crafted to declare certain products as exclusive to cottage industries. Such legislation could also modernize the definition of cottage industries to include home-based services, particularly in the digital economy. After all, why shouldn’t work-at-home (WAH) professionals providing online services be considered part of a modern cottage industry?

We must ask ourselves: Are we doing enough to protect and grow our cottage industries? Rebuilding support systems and ensuring exclusivity rights for small producers could be the first steps in revitalizing this vital sector. It's time to prioritize our local entrepreneurs, ensure fair competition, and give cottage industries the robust support they deserve.

Ramon Ike V. Seneres, www.facebook.com/ike.seneres

iseneres@yahoo.com, 09088877282, senseneres.blogspot.com

05-07-2025

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