Sugar authority’s bid to regulate corn syrup imports hits snag

THE Department of Agriculture (DA) will put on hold the implementation of the Sugar Regulatory Administration’s new policy of regulating the entry of high-fructose corn syrup (HFCS), citing the lack of consultations held on the creation of the sugar order and the possible disruption of the soft drink supply.

Agriculture Secretary Emmanuel F. Piñol said that the drafting of Sugar Order No. 3 failed to consult stakeholders as claimed by Coca-Cola FEMSA Philippines, Inc.,, which appealed the order with the DA.

“They say they were not properly consulted. Any change in the type of sugar that use in production of their soft drinks will involve changing their machinery and equipment because their equipment is designed for HFCS,” Mr. Piñol told reporters.

The sugar cane industry prodded the SRA to intervene in the import of HFCS, leading to the drafting of Sugar Order No. 3 issued on Feb. 20 which gave the agency the authority to regulate HFCS in the interest of protecting cane farmers.

Data from the agency shows that beverage makers and food processors shipped some 800,000 metric tons of HFCS into the country in 2016, displacing demand for about 20 million 50-kilo bags of locally produced refined sugar.

Earlier, SRA Administrator Anna Rosario V. Paner said that volume translates to a 33% lost market share for cane sugar.

She added that HFCS importation has driven down sugar prices from a high of more than P1,800/ bag to less than P1,448.68 per bag as of Feb. 12, translating to potential revenue losses of about P20 billion for the current crop year.

Ms. Paner was not immediately available to respond to BusinessWorld’s request for comment on the issue.

The official said that FEMSA, along with the Ambassador of Mexico, where FEMSA is based, called for him to intervene.

“They only have five days’ inventory for their soft drinks, they have a shipment of syrup due tomorrow that they cannot bring in if we do not hold in abeyance Sugar Order No. 3,” Mr. Piñol added.

Mr. Piñol, in a text message on Wednesday, said that the DA, along with the Department of Trade and Industry and stakeholders were at Malacañang yesterday to work out a solution.

“My recommendation to the President is for him to authorize me to hold in abeyance Sugar Order no. 3 pending proper consultations with the stakeholders,” Mr. Piñol added. —