THE Asociacion de Agricultores de La Carlota y Pontevedra Inc. (AALCPI) has joined the clamor against the Sugar Regulatory Administration (SRA) in its move to allow the importation of 200,000 metric tons (MT) of sugar as provided in Sugar Order No. 3.
AALCPI, the biggest non-affiliated sugar planters group based in La Carlota City, Negros Occidental with over 10,000 members, said the importation order during the peak of milling season "will have a disastrous effect in the sugar industry, particularly among the small sugar producers."
Its president, Roberto Cuenca, in a statement Wednesday, February 9, 2022, scored SRA Administrator Hermenegildo Serafica for issuing such an order "without proper consultation with industry stakeholders."
"We were never informed and yet he knows we are the biggest group in so far as membership is concerned, which are mostly small sugar farmers," he said.
"He (Serafica) also knows we are in the midst of milling season and any importation order now will have a ripple effect," Cuenca said as he agreed to other sugar federations saying that the issuance of the sugar order is "ill-timed."
The AALCPI president also slammed the SRA official for justifying that the need to import sugar now is to ensure balance between supply and demand and stabilizing prices "when he has not even addressed our immediate concern of high cost of farm inputs that we have brought to his attention since last year."
Sugar producers have been complaining about the soaring cost of industrial fertilizers that have tripled in less than two years, compounded with the rising cost of fuel, both of which are integral in the survival of the industry, the sugar bloc said.
"Administrator Serafica should take time to consult small farmers so he can personally hear their appeal as many could not afford to even replant for the next crop year if this situation continues," Cuenca said, adding that what is perceived as "high cost of sugar simply off-sets high cost of farm inputs."
AALCPI is also questioning the volume of importation as "too big and definitely, should not have been granted at this time."
Cuenca said they were informed that most producers consulted by the SRA agreed to an importation order but in tranches of 50,000 MT and implemented by the closing of the milling season.
"Right now, we have enough supply, milling is ongoing so what balancing act between supply and demand is Serafica talking about,” he said, adding that "if indeed, there is a projection that supply will be tight in a few months, an initial order of 50,000 metric tons as suggested by industry stakeholders would suffice."
AALCPI will not hesitate to join protest moves by other sugar federations if their appeal will not be heeded, its official said.
Various planters groups in the country have also slammed the issuance of Sugar Order No. 3.
Manuel Lamata, president of the United Sugar Producers Federation (Unifed), said it is appalling that the very agency that is supposed to protect them seems "determined to kill the industry.:
Unifed is one of the biggest federations of sugar planters in the country.
Lamata said it is “very frustrating for the SRA to make this import order a priority when it has not even addressed our request to urge the Department of Agriculture (DA) and Department of Trade and Industry (DTI) to put a cap on fertilizer cost, which was put forth since last year.”
“They only see the increasing cost of sugar in the market but they do not acknowledge the forces driving those prices up and much of it can be attributed to fertilizers that almost tripled its cost and fuel that has breached the P50 per liter mark,” he said, adding that “if you weigh everything, whatever increase in sugar prices we are seeing in the market, goes to our paying high cost of farm inputs.”
Lamata said they have not been consulted on the matter and while they knew that some planters groups agreed to the importation program, “they thought that the SRA and DA will also give, in exchange, fertilizers subsidies at the very least.”
The National Federation of Sugarcane Planters (NFSP) also expressed its objection and requested the SRA to reconsider its decision in what the federation deems as “excessive importation” of sugar.
In his letter to Serafica, NFSP President Enrique Rojas said the importation far exceeds the projected production shortfall for Crop Year 2021 to 2022.
Rojas asked the SRA to amend the sugar order and reduce the allowable volume of importation.
“We hope that your good office will seriously consider our recommendation to prevent the drop in millgate sugar prices, which will be disastrous to our thousands of small farmers, who are already devastated by the unabated increases in the prices of fertilizers, fuel and other farm inputs,” he stressed.
Released on February 4, 2022, Sugar Order No. 3 provides for the country’s sugar import program for Crop Year 2021 to 2022.
It stated that of the total import volume of 200,000 MT of refined sugar, half of which shall be standard grade refined sugar and the other 100,000 MT shall be bottlers’ grade refined sugar.
The import program is open and voluntary to industrial users of refined sugar that are duly registered with the SRA as an international sugar trader in good standing for Crop Year 2021 to 2022.
It said an SRA-registered industrial user may use the services of an SRA-registered international sugar trader in good standing for crop year 2021 to 2022.
It also stated that an industrial user that is not registered with the SRA as an international sugar trader for the said crop year must secure the services of an SRA-registered international sugar trader to import the sugar for its account.
This meant that the unregistered industrial user is not eligible to participate in this import program, it added.
The order defines industrial users as confectionaries, biscuits, bread, candles, milk, juice, and food and beverage manufacturers using refined sugar in the manufacture of their finished products in the country and for sale in the domestic market.
“No transfer to another warehouse and no withdrawal of imported C sugar shall be allowed without prior written authority and reclassification to B sugar by the SRA Board,” it added.
For former SRA Board Member lawyer Dino Yulo, who represent the planters, this is “adding insult to injury,” saying that the issuance of the order is “very ill-timed.”
The sugar groups said the SRA justified the sugar order to stabilize rising costs of sugar and expected low productivity in sugar-producing areas that were affected by the recent Typhoon Odette.
Based on the order, the wholesale price of raw sugar in the National Capital Region (NCR) went up to P2,000 per 50-kilogram bag while that of refined sugar is P2,900 per 50-kilogram bag as of January 23, 2022.
“Both are historic highs,” the order stated, adding that the prevailing retail price of raw sugar at certain public markets in NCR is P48 per kilogram while refined sugar costs P57 to P60 per kilogram, which are higher than the suggested retail prices for raw and refined sugar, respectively.
Yulo, however, said that it is ironic that while the clamor for high price of sugar comes from small vendors, “the one that will clearly benefit in this importation are industrial users, especially bottling companies that have been provided half of the import quota.”
While the SRA claims that this is based on projection from industry stakeholders that there will be a shortage of sugar due to low production in sugar lands, especially in Negros that was severely devastated by Typhoon Odette and which accounts for more than half of the country’s total production, the import volume is way too much and not at this time when sugar milling is at its peak, Yulo said.
“We are still in a midst of a crisis, and our sugar planters in southern Negros are still trying to recover from the effects of Odette, and here is another crisis that will hit us,” he added.
They hope that the SRA will reconsider and amend the order “until they get a good picture from the ground as to what quantity is just needed to ensure that the industry is protected.”