‘Stable sugar supply, not import lib’
We’re not talking even 10 percent of the 2.1 million. We’re not requesting for liberalization. We’re requesting for import allocation for stabilization, for the cause of processors
Food and agriculture processors have asked for a sugar import allocation of an estimated 105,000 metric tons (MT) annually to stabilize their manufacturing input and raise their global competitiveness.
The Philippine Chamber of Agriculture and Food Inc. (PCAFI) and Philippine Food Processors and Exporters Organization (Philfoodex) member is asking Agriculture Secretary William Dar to grant a maximum of 10 percent sugar import allocation.
This is out of the country’s annual sugar production of 2.1 million MT. Even just half of the amount, or 105,000 MT, will be enough to significantly raise the food processors’ global competitiveness.
It will cut the food manufacturers’ sugar cost from P55 to P60 per kilo locally to P28 to P30 per kilo in other South East Asian countries, particularly Thailand.
PCAFI president Danilo Fausto said the PCAFI and Philfoodex petition for import allocation will be accompanied by an implementation mechanism to ensure it does not adversely affect local sugar farmers’ plight.
“We’ll issue a petition to be submitted to Secretary Dar and President (Rodrigo) Duterte. We will also propose an implementation mechanism that will ensure this allocation will not go to the retail market but rather help our food producers become competitive,” said Fausto.
Philfoodex president Roberto C. Amores said not even 10 percent of production will be asked by processors.
Initially, only 50 percent of each company’s sugar requirement based on its production program is proposed to be granted.
“We’re not talking even 10 percent of the 2.1 million. We’re not requesting for liberalization. We’re requesting for import allocation for stabilization, for the cause of processors,” Amores said.
“As a processor, you will submit your requirements based on your production program and sales. And you will be given only 50 percent of your requirement (not 100 percent).”
This initial allocation per processor will establish credibility of the processor.
The processor should guarantee the sugar import will be used solely as input for its food manufacturing, not for retail to the domestic market (adversely affecting sugar farmers’ income).
Dr. Rolandy Dy, Center for Food and Agribusiness (University of Asia and the Pacific) chief and PCAFI member, said the sugar import allocation for local food processors is necessary.
“We’re not competitive. Never mind (if we’re not competitive in) soft drinks which is not exportable because soft drinks are heavy. The problem is we’re not competitive in products like biscuits, candies,” said Dy.
Filipino food processors can hardly compete with ASEAN biscuit manufacturers.