Proposed conversion of sugar for exports to local use nixed

BACOLOD CITY – Sugar farmers and labor groups are up in arms against the proposed conversion of “D” or world market sugar to “B” also known as domestic sugar as it would further lower domestic millgate prices.

The National Federation of Sugarcane Planters (NFSP) and the Confederation of Sugar Producers’ Associations Inc (Confed) are also opposing the sale of high fructose corn syrup (HFCS) in the domestic market

NFSP president Enrique Rojas said the proposed conversion is a “double murder” against sugar producers, stressing that additional supply of sugar to the domestic market at this time when the milling season is at its peak, would push down domestic sugar prices.

Prices are partially recovering from low levels in the past years due to HFCS importation.

Confed president Francis de la Rama said the local industry continues to be at one of its weak moments, with sugar prices mostly on the downtrend, and with composite prices hitting as low as P1,150 per 50-kilo bag, attributable mainly to the high volume of sugar stock balance at the start of the crop year.

The high beginning stock balance at the start of the year was caused by increase in sugar production and unabated entry of HFCS , which de la Rama said greatly diminished the de- mand for locally produced sugar.

The situation has been detrimental to all sugar industry stakeholders, especially to the small farmers who are predominantly CARP ( Comprehensive Agrarian Reform Program) beneficiaries, who comprise more than 80 percent of local producers.

Rojas said it is the traders who will benefit from the difference between the low-priced “D” sugar and the higher-priced “B” sugar ,and not the sugar producers, if the conversion pushes through.

He added there is no reason to increase the local supply as the sugar industry has sufficient production to supply the local demand.

Dela Rama said they are opposing the reclassification of HFCS from “D” to “B”, noting that the “product was the main culprit why sugar composite prices plunged to prices below production cost”.

The General Alliance of Workers Associations (GAWA) also opposed the proposed conversion, which it said would forestall the recovery of the sugar industry and displace sugar workers.

In his letter to SRA board member Dino Yulo, GAWA secretary general Wennie Sancho said the Regional Tripartite Wages and Productivity Board in Region 6 has yet to start public hearings on the petition of labor for P150 daily wage hike.

The sugar industry may not able to comply with a wage increase if sugar prices plunge, Sancho said.