VARIOUS sugar industry groups were unanimous—before the “unauthorized” importation fiasco blew up last week—in proposing for a second round of sugar importation program to salvage a dwindling local supply and arrest rising prices.
However, they differed on the volume, schedule and type of sugar to be allowed to enter the country.
The industry groups—from planters to retailers—made their respective sugar importation proposals to the Sugar Regulatory Administration (SRA) prior to the approval of the controversial Sugar Order (SO) 4, documents obtained by the BusinessMirror showed.
The groups and federations that made their recommendations were Confederation of Sugar Producers Associations Inc. (Confed), Philippine Sugar Millers Association (PSMA), Luzon Federation of Sugar Producers Inc. (Luzonfed), United Sugar Producers Federation (Unifed), National Federation of Sugarcane Planters (NFSP), and Panay Federation of Sugarcane Farmers.
The Philippine Sugar Millers Association (PSMA), the Philippine Association of Sugar Refiners Inc., and Delmax Corp. also advanced proposals for a second round of sugar importation this year.
Confed proposed an import volume of “not more than 300,000” metric tons (MT) to be equally divided between raw and refined sugar. The PSMA also made the same import proposal of 300,000 MT (150,000 MT of raw sugar and 150,000 MT of refined sugar).
Luzonfed and Unifed made a joint proposal of allowing the importation of 300,000 MT of refined sugar alone. Luzonfed and Unifed have opposed the importation of raw sugar, noting the nearing start of local harvest in the country.
The NFSP proposed 300,000 MT, with half going to the domestic market and the remaining half being allocated to industrial users.
Panayfed recommended a 300,000 MT import volume with 150,000 going to industrial users while the remaining volume going to farmers, traders and other sugar industry stakeholders.
PASRI proposed the smallest import volume at 200,000 MT, pointing out that the utilization of the volume should be “left to the better judgment of parties that will be authorized to import.”
Meanwhile, Delmax Corp. proposed a 250,000-MT import volume, with 100,000 MT being raw sugar and the remaining 150,000 MT, refined sugar.
The SRA conducts industry stakeholders’ consultations prior to an approval of a sugar import program. The SRA board last week approved an additional 300,000 MT of sugar imports for the year, which has been now the subject of controversy.
Government and industry sources told the BusinessMirror that the approval of the 300,000-MT second sugar importation program was above board and was based on facts and data.
“The proposed sugar importation was based on SRA’s official data and supply/demand analysis, as well as prevailing high market prices, which established a clear basis for additional imports,” Aurelio Gerardo J. Valderrama Jr., the acting sugar planters’ representative to the SRA board, said.
“This is supported by resolutions from industry stakeholders themselves, including those who now demand our resignation; the resolutions are on record,” he added.
President Ferdinand R. Marcos Jr. recently disclosed that the country may still have to import sugar, particularly in October when supply is projected to be tight, but only to the tune of 150,000 MT.
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