By National Federation of Sugar Workers
The National Federation of Sugar Workers (NFSW) opposes the Sugar Regulatory Administration’s (SRA) recent announcement allowing the importation of 240,000 metric tons (MT) of refined sugar this coming Sept. 15, 2024, allegedly to stabilize prices.
John Milton “Butch” Lozande, secretary general of the NFSW, stated that as of July 21, 2024 there is still enough supply of sugar, both raw and refined at 723,158.1 MT. Other than that, the Philippines also imports 200,000-300,000 MT per year of pre-mix sugar.
In addition to these, one other absurd reason for importing refined sugar is to replenish 63,500 MT of those exported to the US earlier.
In essence, Ka Butch is saying that the SRA wants to import refined sugar so that its favored traders can benefit a lot from this arrangement.
According to the US Global Agricultural Information Network Sugar Report for price computation of imported sugar to the Philippines, the wholesale price (per 50 kg.) difference of imported sugar from the Association of Southeast Asian Nations to locally produced sugar is P1,346.30.
So that means one metric ton of imported sugar is P26,926 cheaper than locally produced sugar. You multiply that by 240,000 MT and the result is a mind blogging P6,462,240,000.
We thus dare SRA Administrator Pablo Luis Azcona to name these favored traders since he took office and refute these allegations.
The government will also earn P461.25 for every 50 kilos of imported sugar. These are for tariff, VAT, Customs fees and SRA Clearance and fees (of P36) for a total of P2,214,000,000. SRA alone will earn P172,800,000 from the above total.
The NFSW demands that instead of resorting to importations, the SRA which is under the DA should develop the sugar industry and safeguard its small planters and workers primarily.
This can be done by providing production and wage assistance to small planters, who comprise the biggest number of producing sugar, so that they can cope up with the rising production costs, and pay their field sugar workers decently.
The government should also prohibit land use conversion of sugar lands into non-agricultural purposes so that it could be self reliant on sugar and the other products of sugar cane, such as molasses and alcohol and complete land reform in sugarcane areas, especially in Negros Island.