SRA temporarily stalls sugar import order; NegOcc farmers groups obtain TRO

FOLLOWING the issuance of a temporary restraining order (TRO), the Sugar Regulatory Administration (SRA) has temporarily stalled the implementation of Sugar Order No. 3 (SO3) that provides for the country’s sugar import program for Crop Year 2021 to 2022.

Sugar Regulatory Administrator Hermenegildo Serafica, in a memorandum circular dated February 15, told all concerned applicants under SO3 that the sugar importation has been temporarily put on hold.

“Due to the issuance of a TRO, the sugar import program for Crop Year 2021 to 2022 is hereby temporarily held in abeyance until further notice,” he said.

On February 11, 2022, a TRO was issued by Executive Judge Reginald Fuentebella of the Regional Trial Court Branch 73 based in Sagay City, Negros Occidental.

It was filed by the United Sugar Producers Federation (Unifed), one of the biggest federations of sugar planters in the country, through its member-association, Rural Sugar Planters Association Inc.

Unifed Director Joseph Edgar Sarrosa, also the president of Rural Sugar Planters Association Inc., earlier 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.

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.

"The SRA pushed us to the wall, thus the filing of the TRO," Sarrosa said. "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.

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 said 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.

Another TRO

Meanwhile, another local court also issued a TRO following the case filed by Enrique Tayo representing the Negros Occidental Federation of Farmers Associations against the SRA.

Executive Judge Walter Zorilla of the Regional Trial Court in Himamaylan City, Negros Occidental granted the restraining order on February 15, 2022, upon the petitioner’s petition for declaratory relief with prayer for issuance of a TRO and writ of preliminary injunction.

The order said the TRO is effective for a period of 72 hours from issuance, while the summary hearing is set Thursday, February 17.

“Accordingly, the respondent SRA represented by Hermenegildo Serafica, or any of its agents, representatives or any person or persons acting in its behalf are hereby directed, within the said period, to cease and desist and refrain from implementing Sugar Order No. 3,” it added.