Cost of imported sugar likely to rise–lawmaker
THE chairman of the House Committee on Ways and Means has warned that elevated sugar prices could still rise by around 60 percent.
“World sugar prices went as high as 29.3 cents per pound during the recovery period post-gfc [global financial crisis]. Since oil prices have shown a momentum similar to what it did after the 2008-2009 crisis, there is little reason to believe world sugar prices will also approach the levels it did then,” Albay Rep. Joey Sarte Salceda said in a statement over the weekend. “World prices are currently at 18.5 (cents per pound). So, you still have an upside potential of around 58 percent to hit those levels.”
“At some point, I think we will have to import. That seems to me to be inevitable. But we should try our best to address the domestic supply situation as well, because, as I said, world prices are likely to pick up, consistent with usual trends post-crisis.”
Salceda said Congress will try to meet with sugar stakeholders as soon as session resumes and committees are organized.
“The house leadership will probably deputize a team of members of Congress to look into solutions, and we will work very closely with the President’s economic managers,” he said.
Five-point mitigation
MEANWHILE, Salceda has proposed a five-point mitigation agenda to prevent the country from running out of sugar.
The lawmaker proposed a “fivepoint plan” that the Executive branch can immediately undertake to mitigate supply woes, short of increasing imports.
Salceda said the National Biofuels Board (NBB) should set the supply of sugar biofuel additives required of petroleum products to zero, and redirect the demand to other sources such as jathropa, cassava, and others.
“The Biofuels Act of 2006 requires oil companies to produce a gasoline blend with at least 10 percent bioethanol, so not having to use sugarcane for that demand will already be a good start. PBBM’S [President Bongbong Marcos] proposal to have the NBB increase biofuel content can require sources other than sugar,” he said.
“Second, let us request manufacturers of rubbing alcohol and other non-food sugarcane-based products to shift to other sources. I think in this regard, the Department of Science and Technology will be very important,” he added.
Once face-to-face classes resume, Salceda said the government should be stricter about restricting sugarsweetened beverages in schools to reduce non-essential and unhealthy consumption of sugar.
Salceda said the President can in struct the Sugar Regulatory Administration, the department of agriculture, and the local government units covering sugar districts to evaluate and optimize processes in the sugar value-chain, from harvesting to milling to refining.
“Fifth, PBBM can validate and investigate possible hoarding of sugar by traders. Some local planters have pointed out that there should not be sugar shortages,” he said.
The lawmaker also said that the Philippine Competition Commis-sion, the department of agriculture, and the Department of Trade and Industry can be mobilized to prioritize monitoring against pricing and supply abuses.