26 lawmakers move to block sugar import liberalization

Around 26 lawmakers have moved to block the deregulation or liberalization of sugar importation by forging a house resolution expressing their “strong opposition” to expose the country to unlimited supply of cheaper, imported sugar.

Lawmakers were particularly reacting to the economic bulletin recently issued by the Department of Finance (DOF), calling for the removal of quantitative restrictions on sugar exports, a copy of House Resolution 412 showed.

“The liberalization of sugar importation is being proposed because local sugar prices are higher than those in the world market,” the house resolution reads.

“It is not correct to compare local sugar prices with world market prices because the world sugar market is where major sugar exporting countries such as Thailand and India sell their excess at below cost of production,” it added.

House Resolution No. 412 also pointed out that major sugar exporting countries can afford to dump their excess sugar production in the world market because they receive massive subsidies from their government and other forms of protection.

Some of the lawmakers that signed the resolution include Representatives Francisco Benitez, Noel Villanueva, Jocelyn Limkaichoing, Arnulfo Teves Jr., Gerardo Valmayor Jr., Lucy Torres Gomez, Lorenz Defensor, Manuel Zubiri, among others.

Confederation of Sugar Producers (CONFED) Spokesman Raymond Montinola said the house resolution will benefit sugar producers, including millions of others who in one way or another are dependent on the sugar industry for their day-to-day needs.

Right now, the sugar industry is said to provide employment to 700,000 sugar workers across more than 20 sugar-producing provinces in the country.

"We have been harping on this since DOF issued the pronouncements that they will once again pursue sugar liberalization as this is disastrous to the industry. The high cost of retail prices in the domestic market has no correlation with mill-gate prices which is also why time and again, we have asked DTI [Department of Trade and Industry] to look into this, "Montinola said.

Since April, DTI was being urged to investigate the rising gap between retail and millsite prices of sugar, with Sugar Regulatory Administration (SRA) suspecting that “there are sectors profiting largely" at the expense of local sugar farmers, workers, and producers.

An earlier report showed that a retail price of 160 a kilo for sugar means the mill-site price has to be around 13,000 per 50-kilo bag.