Sugar stakeholders vow to block easing of imports

The sugar sector is optimistic lawmakers will not heed calls of the country’s economic team to liberalize sugar imports due to the significant impact of a recent move to open up the local rice industry.

Sugar Regulatory Administration board member for planters side Dino Yulo, said he would move to pass a resolution that would formally oppose the call of the Department of Finance to remove quantitative restrictions on sugar imports.

Yulo said the industry would also block all moves to pass regulations in both chambers of Congress to liberalize the industry.

“This may be an economic problem, but the solution is political. We have friendly forces that transcend more than mere allies,” Yulo said in a roundtable discussion yesterday.

“Many of the senators and lawmakers know what is going to happen because we have gone through this in the ‘80s,” he said.

At least 24 lawmakers recently signed House Resolution 412 opposing the planned liberalization of sugar importation.

“I believe that the sugar industry is more organized. We have a bit of political capital.

Plus we have seen it in the rice sector. The DOF pitched that as the answer to inflation, but the drop in palay prices is more than what they actually predicted. They should focus on solving that first,” he said.

Yulo asked the DoF to carefully study its figures and do consultations with stakeholders.

He said the time to liberalize the sector is when it is already at par with that of Thailand, the largest producer in the Asean region.

“Thailand rolls out new varieties every five years, us every decade. Thailand and Vietnam studied here in the Philippines and look at them now. The difference is government support,” he said.

SRA said there is no need to import sugar until the end of the year as the recent sugar order is meant to cover the demand for the holidays.

Of the 250,000 metric tons of imports, 170,000 MT had already arrived in the country. The local supply is seen to reach around 300,000 MT.

The sugar industry, valued at P120 billion annually, contributes P4.5 billion in value added taxes, P37 billion in excise taxes and P6.9 billion in corporate income and real taxes.