SRA will not allow confectionery makers to directly import sugar

Sugar Regulatory Administration (SRA) — which just gave the green light for the importation of sugar for the first time in two years — has maintained that it will not allow confectionery producers to directly import the sweetener despite their request.

Moreover, SRA Board Member Roland Beltran said "there is no truth" to the claims of three of the country's largest business groups that the government provides "unreasonable protection" to the sugar industry.

Such statement only forms part of the letter that Philippine Chamber of Commerce and Industry (PCCI), Philippine Exporters Confederation (PhilExport), and Philippine Food Processors and Exporters Organization, Inc. (PhilFoodex) sent to Agriculture Secretary Emmanuel Piñol, who sits as the chair of SRA board.

In the letter, Sergio Ortiz-Luis Jr., president of PhilExport, called the sugar industry "the oldest baby industry in the country" that stunted the development of the food manufacturing sector over the past years.

Beltran junked this accusation, which he described as "preposterous and farthest from the truth".

"The government, through SRA, is mandated to regulate the supply of sugar in the domestic market otherwise it will flood the market with [imported] sugar to the detriment of the stakeholders," Beltran said.

"We serve the interest of the stakeholders. Especially small farmers with five hectares and less, ARB [agrarian reform beneficiaries], the mills, and workers of the mills. We need to balance the interest of all stakeholders. Obviously, every interest is important, not only that of the confectioneries. They have to do their share for the good of the industry and all the stakeholders," he further said.

Based on the Sugar Order No. 10, which ordered the importation of 200,000 metric tons (MT) of sugar, only international traders registered with SRA may purchase sugar abroad.

This was the first time in more than two years that traders and millers from the Philippines were allowed to import sugar from other countries.

Beltran said it can't approve the request of Confectionery, Biscuits and Snack Association (PCBSA) to directly import sugar because "it will destroy the existing program already in place".

"It will also result to a double standard. It is not a good policy to allow them to directly import," he said.

"It is preferred and helpful to a well orderly system of sugar supply and to stabilize prices that they join the program of importation through their designated international traders," he added.

For his part, Philfoodex President Roberto Amores said that because it's only the international sugar traders are given the authority to import, he "doesn't think" that small and medium enterprises (SMEs) will benefit from this importation.

On June 26, the price of of raw sugar per 50-kilo bag in Metro Manila surged to as high as R2,270 and averaged around R2,148.00, compared to its September prices — or just when the current crop year was about to start — which only averaged at R1,564.64.

The price for refined sugar, on the other hand, surged to R3,020 per 50-kilo bag, while it averaged around R2,904.00. This was also higher than the September prices, which only stood at R2,016.67 to P2,040.