A TEMPORARY restraining order (TRO) has been granted by a local court against the implementation of Sugar Order 3 (SO3) by the Sugar Regulatory Administration (SRA) that provides for the country's sugar importation program for Crop Year 2021 to 2022.
This was announced Tuesday, February 15, by officials of the United Sugar Producers Federation (Unifed), one of the biggest federations of sugar planters in the country, in a press conference at the group's office in Bacolod City.
Joseph Edgar Sarrosa, director of Unifed, said the federation filed the injunction with prayer for the issuance of a TRO last week through its member-association, the Rural Sugar Planters Association Inc.
Dated February 11, 2022, the restraining order was issued by Executive Judge Reginald Fuentebella of the Regional Trial Court Branch 73 based in Sagay City, Negros Occidental.
Sarrosa, also the president of Rural Sugar Planters Association Inc., said they led the filing of the TRO upon the urging of their planter-members who expected that such a sugar order will lead to depressed sugar prices, a fact that already happened during last week's bidding, just two days after the release of SO3.
"As of this time, the TRO decision is on its way to Manila to be served to SRA Administrator Hermenigildo Serafica, if it is not yet been served," he said Tuesday morning, stressing that no importation shall be made while the restraining order is taking effect.
The court, in its order, stated that the TRO shall be effective for the period of 20 days from the issuance, and the hearing on the motion for the writ of preliminary injunction is set on February 24, 2022.
"If things go well for us then it [TRO] becomes permanent, then we proceed with the main case of having that sugar order voided," the group said.
It can be recalled that aside from Unifed, other planters groups in the country like the National Federation of Sugarcane Planters (NFSP) and Asociacion de Agricultores de La Carlota y Pontevedra Inc. (AALCPI) have also slammed the issuance of SO3 that allows the "ill-timed and ill-planned" importation of 200,000 metric tons (MT) of sugar, especially since it is the peak of the sugar milling season.
Released on February 4, 2022, SO3 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.
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.
It stated that 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.
"There are reports that sugar prices today is at an all-time high," Sarrosa said, adding that "probably yes, but if you look at the price vis-a-vis production cost, we are barely making even."
He lamented that "worst hit are the small farmers who are already suffering from skyrocketing prices of farm inputs and will suffer more due to the drop of sugar prices."
On Monday, February 14, planters called on to recall SO3 as local raw sugar prices dropped by an average of P230 per bag, or almost 10 percent in most mills.
Former SRA board member, representing the planters, Emilio "Dino" Yulo slammed the agency and sought the recall of the sugar order, saying "this is evident that the ill-timed announcement of the SRA to import led to a price drop."
Yulo reported that two days after SO3 was released, week ending sugar bidding closed with all mills and sugar groups losing by as low as P99.12 per 50-kilo bag (Lkg) to as high as P230/Lkg at Victorias Milling Company (VMC).
Prices of different mills and associations showed that end of January, raw sugar prices was at P2,110/Lkg in VMC; P1,981 for APSSI Hawaian and AHSSI Hawaian; P1,973 for First Farmers; P1,920 at Lopez Sugar Central; P1,898 for AALCPI-URC La Carlota; P1,885 for Bipa-Biscom and P1,865 for Sonedco (Kabilog).
On February 6, sugar prices dropped at VMC to P1,880 or a difference of P230/Lkg followed by Bipa-Biscom down by P150, ALCCPI-URC La Carlota down by P145; Lopez Sugar Central fell by P140; Sonedco (Kabilog) down by P130; AAHSI-Hawaian and First Farmers lost by a little over P121 while APSSI-Hawaian had a drop of P99.12.
Yulo attributed the huge drop to "the premature announcement" of the SRA, adding that a drop by as much as P10 percent has a huge impact on the livelihood of small sugar farmers that comprises more than 80 percent of sugar producers.
"These small farmers are barely surviving due to the high cost of farm inputs, particularly fertilizers and fuel that has been increasing steadily each week and will now suffer more because of this drop in sugar prices," he said.
For his part, Sarrosa said that since last year, they have been appealing to the SRA, Department of Agriculture (DA) and other government agencies to help us with the high price of farm inputs, whether through a price freeze or subsidies, but nothing came through.
"The SRA pushed us to the wall, thus the filing of the TRO," he said, adding that "we are not against importation, what we are against is an ill-timed and ill-planned importation. Any importation should be calibrated, scheduled and fair to all."
According to Unifed, the filing of the TRO is just one of the measures they are taking to avert "grave damage" to the sugar industry.
With the TRO, they hope that the traders will stop speculating and the price will recover.
For lawyer Edgardo Acuña, also a director of the federation, he personally believes that they should stage a massive action like calling for a boycott against a multinational company if the result of the case will not favor the sugar planters.
"We should, because they are killing the industry," he added.
But for Sarrosa, they remained optimistic and said, "I hope and pray we will come together for an amicable and fair importation program."
"We hope for the best but we prepare for the worst," Sarrosa added.
Moreover, the planters also argued to SRA's pronoucement that the recent onslaught of Typhoon Odette is projected to cause a shortage of sugar due to low production in sugar lands like Negros.
In Kabankalan City, for instance, one of the badly-hit areas, they said the huge damage is only for those harvested sugarcane and up for milling next year so it does not affect this crop year.
"We felt betrayed by Administrator Serafica, they made Odette as the reason for a sudden importation of 200 metric tons. This importation has no basis in fact, there's no shortage of sugar," the group said.
As they push for a mutual and fair sugar order, the federation wants SO3 to be declared as illegal.
Senate inquiry
In a related development, Senate majority leader Juan Miguel Zubiri has filed a resolution directing the Committee on Agriculture, Food and Agrarian Reform to conduct an inquiry, in aid of legislation, on to allow the importation of sugar even at the height of the harvest and milling season, as well as importation programs of the Department of Agriculture on other agricultural products with the end in view of crafting policy that will ensure support for farmers and food security instead of import dependency.
The Negrense senator, in the resolution, said the DA continues with its pro-import policies to the detriment of our own farmers even as the ongoing coronavirus disease (Covid-19) pandemic has highlighted the vital importance of agricultural sector in providing food requirements amid the strictest lockdowns.
Zubiri believed that this sugar importation program of the DA during the harvest and milling season is contrary to its officials' commitment during the budget deliberation of the department in the Senate plenary on November 15, 2021.
"There is a need to provide a clear-cut government policy on importation during the harvest and milling season not just for sugar but for other agricultural products as well so as not to unnecessarily burden our small and poor farmers," he added.
Saying that it is an agricultural crisis, the senator earlier expressed alarm by the unabated hike in prices of agricultural inputs, particularly fertilizers, that has almost tripled in just 18 months.
Objects, too
Moreover, the Provincial Board of Negros Occidental also approved a resolution expressing its objection to such a sugar order.
The resolution stated that the timing of the entry of the imported sugar into the Philippines will coincide with the ongoing milling season, which will severely affect the income of sugar farmers who at the moment are reeling from the prohibitive cost of fertilizer and fuel.
"Only a week before the issuance of SO3, the SRA administrator has come out saying that there was no reason for prices to increase since supply is stable despite the effects of Typhoon Odette," it stated, adding that "in effect, Administrator Serafica, has directed monitoring on prices if needed, impose appropriate sanctions on sellers."
The Provincial Board believed that allowing industrial users alone to participate in the import program, to the exclusion of consumers, end-users and sugar producers is detrimental to the consumers, sugar farmers and other stakeholders of the sugar industry.
With the influx of imported sugar, the sugar producers who are still reeling from the destruction of their plantations and facilities will have to carry the added burden of competing with cheaper prices of the imported sugar, it said.
"Hence, excluding sugar producers in the sugar import program is an added insult to the injury, it added.