Bill 484.

Summary.

The bill amends twelve provisions of Law 69 of 2001 to regulate, promote, protect, and modernize panela production in Panama. It connects production with sustainable practices, clean technology, innovation, sanitary quality, added value, rural economic development, and food security. It revises the applicable definitions, including panela activity, agroindustry, good production practices, designation of origin, renewable energy, panela enterprises, sugarcane mills, and panela itself. In defining sugarcane, it identifies India as its place of origin. Panela is described as a product made from fresh sugarcane juice without chemical additives or refined sugars, under controlled hygiene and sanitation conditions.

The amendment assigns the Ministry of Agricultural Development (Ministerio de Desarrollo Agropecuario), in coordination with the Ministry of Commerce and Industries (Ministerio de Comercio e Industrias) and the Ministry of Environment (Ministerio de Ambiente), responsibility for maintaining the National Sustainable Panela Activity Program. The program would include a digital register of producers and mills, agroindustrial technical assistance, incentives for energy transition and productive efficiency, and support for exports and promotion of Panamanian panela. Newly installed mills would have to meet hygiene, food safety, energy efficiency, and waste control requirements under technical rules issued by the Ministry of Health (Ministerio de Salud) with participation from the Ministry of Environment.

Sugarcane juice products and byproducts sold on the market would have to comply with Panamanian quality and food safety standards, technical regulations of the General Directorate of Industrial Standards and Technologies (Dirección General de Normas y Tecnologías Industriales) and the Panamanian Commission on Industrial and Technical Standards (Comisión Panameña de Normas Industriales y Técnicas), and Ministry of Health rules. The bill applies industrial standards and related technical documents to domestically produced and imported panela products and byproducts; for this provision it names the General Directorate of Industrial Standards and Technology (Dirección General de Normas y Tecnología Industrial). The Ministry of Agricultural Development, the Agricultural Innovation Institute of Panama (Instituto de Innovación Agropecuaria de Panamá), the Panamanian Autonomous Cooperative Institute (Instituto Panameño Autónomo Cooperativo), national universities, and state financial institutions would promote research, training, and technical assistance concerning sustainable industrialization and clean technology. Green credit lines and innovation support funds would give priority to rural micro, small, and medium enterprises.

The bill creates the National Advisory Commission on Panela Activity (Comisión Nacional Consultiva de la Actividad Panelera) as a permanent consultative body. Its functions would include proposing policies and regulations; advancing marketing and added value; coordinating technical training, organic certification, and designations of origin; and promoting international market access and financing. The relevant minister or a designee would chair it. Members would represent the Ministry of Environment, Ministry of Commerce and Industries, Ministry of Health, University of Panama (Universidad de Panamá), Technological University of Panama (Universidad Tecnológica de Panamá), Autonomous University of Chiriquí (Universidad Autónoma de Chiriquí), National Bank of Panama (Banco Nacional de Panamá), Agricultural Development Bank (Banco de Desarrollo Agropecuario), Agricultural Marketing Institute (Instituto de Mercadeo Agropecuario), Micro, Small and Medium Enterprise Authority (Autoridad de la Micro, Pequeña y Mediana Empresa), and National Secretariat for Science, Technology and Innovation (Secretaría Nacional de Ciencia, Tecnología e Innovación), alongside previously named sector institutions and a producer from each province where panela is produced. Each member would have an alternate; appointments would last two years and could be renewed.

The bill prohibits using sugar to make panela. Use of sugar, sodium hydrosulfite, anilines, toxic dyes, other contaminants, or industrial sugarcane molasses that impair nutritional quality or endanger health would draw a fine of B/.500.00 to B/.5,000.00 for a first offense, closure for a second, and cancellation of registration and permanent closure for a third. Penalties would be adjusted for inflation. The Ministry of Health could order seizure, temporary suspension, or closure for repeat violations. Smuggling panela products and falsifying their origin or labels would carry a fine equal to three times the product’s value or imprisonment for one to two years; smuggled products would be seized.

Owners of existing mills could register with the Directorate of Agroindustries (Dirección de Agroindustrias). The Ministry of Education (Ministerio de Educación), Ministry of Agricultural Development, and Agricultural Innovation Institute of Panama would develop rural agroindustrial education programs. Competent agricultural, health, and commerce authorities would regulate, supervise, and enforce compliance. The provisions would concern sugarcane and panela producers, mill owners, traders, importers, universities, financial institutions, and standards bodies. The proposed law would take effect the day after promulgation.