The Confederation of Sugar Producers (Confed) stood pat on its position that importation is not the solution in reducing the retail price of the sweetener after new talks of imports between food processors and government emerged recently.
In a news statement issued on Tuesday, Confed emphasized that importation “is not the answer to alleged high cost of domestic sugar.”
“Rather, the Department of Trade and Industry [DTI], along with the Sugar Regulatory Administration [SRA], should resolve the issue of sugar prices as they are mandated without killing the local sugar industry,” Confed Spokesman Raymond Montinola said.
Confed issued its statement after a new proposed deal of sugar importation has been disclosed by Trade Secretary Ramon M. Lopez between food processors and SRA Administrator Hermenegildo Serafica.
Lopez said part of the talks with SRA’s Serafica is that food processors and other end-users should be allowed to import sugar if the price of the locally produced sweetener cannot match the price of imported ones of around P1,900 per bag.
“Of course, we prefer local, but if they cannot get sugar at that price then you should allow them [to import]. It’s like we have a benchmark, that’s my suggestion to SRA and they agreed in principle,” Lopez said over the weekend.
The talks between Lopez, Serafica and the food processors came at a time when the administration’s economic managers have temporarily shelved their proposal to liberalize the sugar industry pending government interventions to help local planters become competitive against foreign producers, such as Thailand.
Montinola reiterated that the alleged high cost of local sugar is caused by unscrupulous traders that are jacking up the prices from the farm-gate level.
“[We] cannot understand why the burden to reduce prices is pressed over the shoulder of the sugar farmer when records show that farm-gate prices are only pegged at P30.00 per kilo for brown sugar, or P1,500 per 50-kilo bag,” he said.
“Prices should be reduced at the retail market and not against the lowly sugar farmer,” Montinola said, adding that there is no need to import since there has been already an importation of 250,000 metric tons of refined sugar that should have stabilized sugar prices.
Furthermore, Montinola urged the government to come up with figures and data on domestic prices of sugar, stock balances, and local consumption, particularly that of end-users like food manufacturers and processors, to have a “better picture” of the current situation.
Confed reiterated their recommendations for DTI to implement their mandate under the Price Act where they can set the price ceiling for sugar sold at the retail level.
“Under Section [3] [d] The Department of Trade and Industry, with reference to all other basic necessities and prime commodities. Sugar, as a commodity, falls under basic needs Section 3 [1] that the DTI together with the SRA under the DA can establish the proper retail price range and provide the buying public together with local food manufacturers affordable sugar prices,” it said.
Confed also urged anew local food manufacturers “to buy directly their sugar requirements from sugar districts and associations nearest their supply hubs to avail of the low farm-gate prices and avoid middle men to further minimize on cost.”