Bacaoco: Smuggling and magic sugar: cause and effect at play

HAPPY days are here again! For sugar smugglers, that is.

Jose Mari Miranda, president of the Cebu-based Bogo-Medellin Planters Association and a key officer of the National Federation of Sugarcane Planters (NFSP), Inc., informed NFSP president Enrique D. Rojas late Monday afternoon that smuggled refined sugar has found its way to the Cebu market and is being sold in a store in Tabuan, Talisay and in other parts of Cebu.

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This prompted Rojas to sound the alarm and call on the concerned national government agencies to immediately act on the report and to swoop down on the perpetrators of this crime which has wreaked havoc on the sugar industry in the past years when world sugar prices were down.

With the softening of world sugar prices, sugar smuggling is back. If left unchecked, this will dampen domestic sugar prices and end the short-lived favorable prices enjoyed by sugar producers.

Industry stakeholders should join hands to denounce this nefarious activity and compel the national government to clamp down on the activities of the smugglers before it’s too late.

The resurgence of sugar smuggling is simply cause and effect at work. If domestic prices are high while world prices are low, some enterprising souls will bring in cheaper smuggled refined sugar so that they can make a huge profit by selling them at the domestic market.

Sugar producers will be the ultimate losers because, as domestic prices are driven down by the cheaper smuggled sugar, producers will be robbed of the rightful fruits of their labor. Even the traders are affected because they cannot get a fair return on the sugar which they previously bought at relatively high prices.

Government also loses in terms of potential revenue from tariff which should have been slapped on the imported product if it was brought legitimately into the country.

Some government officials, however, end up as winners because they get a share of the profit from the sale of the smuggled sugar in return for turning a blind eye on the illicit transaction.

Reports have it that a former politician down south is behind the present resurgence of sugar smuggling. A close ally of Malacañang, he was a very prominent candidate during the previous national election. He was unsuccessful in his bid but, if his protectors have their way, he might soon occupy a key government position which will make it even easier for him and his cohorts to continue with their lucrative, albeit illegal, business.

Lito Coscolluela, who has been unequivocal in his condemnation of sugar smuggling and who has been unbending in running after the smugglers during his stint as SRA top honcho, was once asked what he would do if the smugglers’ footsteps lead to Malacañang.

Reportedly, Lito replied, “We will cross the bridge when we get there.” Lucky for Lito, he was no longer connected with SRA when the “bridge” appeared. “Let somebody else make the decision whether to cross the bridge or not,” Lito might say.

SRA does not have a duly-appointed head as of now. The much-ballyhooed Presidential Anti-Smuggling Group has its hands tied as it tries to convince the Supreme Court of the constitutionality of its existence.

Under this scenario, what should the sugar industry stakeholders do with the recurrence of sugar smuggling? The industry should not allow government to dilly-dally on this problem. It should badger government to perform its mandate of enforcing the law and of protecting honest citizens.

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The emergence of “magic sugar” comes as no surprise. Again, it’s simply cause and effect at work. Allow me to share with you an excerpt from Cane Points published on January 26.

“The spike in sugar prices will motivate other greedy souls to use cheaper sugar substitutes such as the carcinogenic ‘magic sugar’. Several years ago, magic sugar has been discovered being used by street vendors and sold at retail outlets. Was it only two years ago that NBI-Bacolod head Mamerto Cortez and his men raided and apprehended several packs of magic sugar right here in Bacolod?

If there is a market for a product, whether the product is legitimate or illegal, there will always be an enterprising soul who will fill that demand in the market. With current high sugar prices, cheaper sugar substitutes might become in demand. And where there’s profit to be made, somebody will step up to supply that demand.

DTI and other government agencies should be pro-active. Aside from running after profiteers who are taking advantage of the perceived tightness in sugar supply, government should also be on the lookout against the entry of harmful sugar substitutes.

This early, government should form a task force to pre-empt this illicit market. They should conduct info dissemination to enlighten the public against the dangers of magic sugar and similar carcinogenic substances.

They should not wait for these carcinogenic substances to leak into the market. They should instead be vigilant and they should thwart any attempt to introduce these dangerous substances into the diet of the unsuspecting consumers.”

In the end, government cannot be relied upon to protect its citizens all the time. The citizens have to take the necessary precaution to spare themselves from the health hazards of magic sugar. Caveat emptor. Let the buyer beware. (For reactions and suggestions, email bbacaoco@yahoo.com.)