THE Confederation of Sugar Producers (Confed) has reiterated its position that importation is not the answer to the 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.
This is the group’s reaction to the recent pronouncement of Trade Secretary Ramon Lopez urging the Sugar Board to allow food processors that sells to domestic markets to import sugar if “local sugar prices cannot match import prices for the sweetener.”
Confed spokesperson Raymond Montinola, in a statement yesterday, said they cannot understand why the burden to reduce prices is pressed over the shoulder of the sugar farmers when records show that farm gate prices are only pegged at P30.00 per kilogram for brown sugar or P1,500 per 50-kilo bag.
Lopez’ statement, on the other hand, stated that “food processors need to be able to purchase domestic refined sugar at P1,900 per bag, instead of the P2,500 or P3,000 they sometimes pay,” Montinola said.
“Prices should be reduced at the retail market and not against the lowly sugar farmer,” he 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 the prices of the commodity.
He also said that “we seek clarification with regards to domestic prices, stock balances and availability of sugar as raw materials for both local manufacturers and food processor exporters so we can have a better picture to address this issue.”
For his part, former SRA Administrator Bernardo Trebol has cautioned the DTI and SRA in pointing the blame on the industry because “local sugar farmers have nothing to do with domestic retail prices.”
Trebol said sugar farmers know only one thing and that is to grow sugarcane.
“Our industry survived even with the challenges of progressive lands chopped into small parcels land yet we make a conscious effort to consolidate these farms into one functional farm although this is easier said than done,” he said.
The former SRA official said that everyone knows sugar farming is a plantation crop that will survive only with economies of scale.
“We are lucky to have sustained livelihood for our farmers in general. But further pressure to reduce our farm gate prices might be the last straw that will break the camel’s back,” he said.
Also, the confederation reiterated its recommendation for the DTI to utilize their mandate through the Price Act where they can provide price ceiling to all other basic necessities and prime commodities.
Sugar as a commodity falls under basic needs so 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.
“This avenue can perhaps provide the win-win solution sought after by government,” Montinola said, adding that they have issued then an invitation and are reiterating it once again “for 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.”
Confed - Negros and Panay chairman Nicolas Ledesma Jr., meanwhile, said that with regard to food processor exporters, “they are given import permits by the SRA for their sugar supply requirements provided that the finished products are solely for export.”
“We hope that the DTI will also see our side in this issue and resolve it with lawful tools they have on hand rather than incessantly calling for importation as a quick fix solution,” he added.