THE Confederation of Sugar Producers Associations (Confed) is opposing the call of the food processors to deregulate the industry and allow open importation of sugar, its official said.
Confed spokesperson Raymond Montinola, in a statement Wednesday, June 12, said it seems that the lobby to liberalize sugar importation in the country has been resurrected.
This is through food processors and manufacturers who comprise a miniscule market in terms of sugar usage, he said.
Sugar producers quoted Philippine Food Exporters Inc. president Roberto Amores saying “domestic processors are hurting and high cost of sugar in the local market is killing the local industry but favoring foreign competition.”
“We beg to disagree with him (Amores) because millgate sugar prices has not increased drastically in the past months to warrant a labelling of prohibitive cost of domestic sugar,” Montinola added.
Confed said there are already mechanisms set by the Sugar Regulatory Administration (SRA) to allow industrial users, including food processors, to prioritize their need.
They, however, lobbied through the media to call for direct importation knowing that over five million Filipinos directly and indirectly dependent on the sugar industry will suffer, the confederation said.
“We suspect that there are larger groups behind the lobby and we will remain vigilant against this move to ensure that our industry is protected,” it added.
The statement said Amores also compared the cost of sugar from Thailand to that of the Philippines.
This is despite knowing full well that Thailand producers are heavily subsidized while sugar farmers in the country have to fend for themselves without any support from the national government, it said.
It can be recalled that the Sugar Industry Development Act (Sida) fund which was supposed to help especially in the modernization of the industry has been reduced to only P500 million from the initial allocation of P2 billion.
Thus, farmers are reduced to rely on traditional farming, not to mention the high cost of farm inputs and implements, Montinola said.
“Truth be told, food processors have been allowed in the past to directly import sugar for their needs. However, there have been instances that these imported sugar were eventually found sold in domestic market, making it technically sugar smuggling,” he stressed.
Moreover, Confed said that the SRA has already mentioned in the past that it will import sugar when the need arises.
The fact that the same has not been issued means that there is ample sugar in the domestic market for the food processors, the producers said.
“All they have to do is ask and consult with the agency that is tasked to address their concern,” they added.