WHILE the National Federation of Sugarcane Planters (NFSP) maintained that sugar importation is not the solution for lower retail sugar prices, Sugar Regulatory Administration chief Rafael Coscolluela said a stakeholders meeting will be held within the next two weeks.

He said he met with Energy Secretary Angelo Reyes at a luncheon meeting in Manila Thursday, who suggested that a planning session with the Department of Trade and Industry, oil companies and oil players including the ethanol group, the sugar industry should be held "to define the problem, find solution and solve the problem on market price crisis that threatens to adversely affect basic commodities."

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Coscolluela said that perhaps after the meeting, a solution to the problem on the unstable trending of commodity prices must have been mapped out already and creation of a provision.

Like in the case of the sugar industry, Coscolluela told Reyes that that DTI's proposal of importing sugar, which as believed, will stop the rising sugar prices, that Coscolluela said is not the solution because in the first place, there is a shortage in the world market.

"No guarantee that imported sugar prices will be as competitive as against the local market which has even become the issue at the local scene, how much more in the global market? It will not solve the problem even at the local level." Coscolluela said.

He cited that in fact there is no shortage in the supply especially on raw sugar, but except for the refined ones, which he said, is "tightened", noting of a temporary shortage for reasons that the industrial users stocked-up the market especially in the holidays and with the nearing of the election where consumption of sugar is expected to relatively increase.

But he said such shortage cannot be even a cause for alarm since sugar mills in Luzon and Mindanao are starting their milling operations next week.

NFSP president Enrique D. Rojas, for his part, said: "There is no shortage of domestic supply of sugar. Domestic sugar prices are just responding to the stimulus of world sugar supply and demand dynamics. Our present domestic sugar prices are just normal pricing reactions to market forces."

Thus, total cost of imported raw sugar will be around P2,150 per bag or P43 per kilo. If the imported raw sugar is refined, the additional tolling fee and refining weight loss factor will translate to a refined sugar retail price of no less than P48 per kilo, said Rojas.

However, Trade Secretary Peter Favila said the importation will curb the alleged high sugar prices in the country.

"We need to protect the sugar industry, especially sugar workers who themselves can be directly affected," Coscolluela said, citing that 90 percent in the sugar industry are producers who are small farmers, own only at least five hectares of land.

On the 30 percent tariff proposal of the NFSP, Coscollela said that in a meeting with the DOE, "it did not even reach the point of considering the 20 percent proposal how much more of the 30 percent? Reyes finds it even quite difficult discussion on the 20 percent."

Instead, the secretary suggested for a tariff line to be established, Coscolluela said.