Millers hail resolution opposing sugar imports liberalization

Barrera said “sugar producing countries worldwide, not just the Philippines, have measures that effectively protect their sugar industries against subsidized sugar in the world market.” (File Photo: guerrera/Flickr, CC BY-NC-ND 2.0)

MANILA — Sugar stakeholders hailed the passing of House Resolution 412 which opposes the liberalization of sugar imports for the purpose of safeguarding the welfare of farmers and mill workers across the country.

“We are grateful for the support given to the sugar industry.

They (legislators) have defended us from the time we were fighting for the passage of the Sugar Industry Development Act (SIDA), and for the increase in excise taxes on sweetened beverages using imported high-fructose corn syrup,” said lawyer Cocoy Barrera, Executive Director of Philippine Sugar Millers Association (PSMA) in a statement.

HR 412 mentioned the Economic Bulletin issued earlier by the Department of Finance calling for the removal of quantitative restrictions (QR) on sugar imports.

Barrera said “sugar producing countries worldwide, not just the Philippines, have measures that effectively protect their sugar industries against subsidized sugar in the world market.”

He noted that major sugar exporting countries can afford to dump their excess sugar production in the world market because they provide subsidies and other forms of protection such as domestic and export support prices to their sugar farmers and industries.

The United States, a champion of liberalization and globalization, also has an existing policy to regulate sugar importation to effectively protect its farmers from the rise and fall of prices in the world market, he cited.

The Confederation of Sugar Producers Association Inc.

(Confed) also acknowledged the move by legislators for opposing the liberalization of sugar imports.

“We in Confed have never been prouder of our champions in the House of Representatives for feeling the sentiments of the sugar producers, including millions of others who in one way or another are dependent on the sugar industry for their day-to-day needs,” said Raymond Montinola, national spokesperson of Confed.

The legislators believe that import liberalization will be detrimental to farmers, farm workers, their families and communities across the 28 sugar producing provinces of the Philippines.

The resolution was signed by Representatives Francisco Benitez, Joseph Steven Paduano, Noel Villanueva, Arnulfo Teves Jr.

, Jocelyn Limkaichong, Leo Rafael Cueva, Gerardo Valmayor Jr., Juliet Marie Ferrer, Manuel Sagarbarria, Julienne Baronda, Janette Garin, Janice Salimbangon, Vincest Frasco, Lucy Torres Gomez, Lorenz Defensor, Emmanuel Billones, Manuel Zubiri, Eduardo Gullas, Emmarie “Lolypop” Ouano-Dizon, Wilfredo Caminero, Ma. Theresa Collantes, Greg Gasataya, Carl Nicolas Cari and Juan Pablo Bondoc.

In a related development, Senator Juan Miguel Zubiri has filed a resolution urging the Department of Agriculture (DA) and Sugar Regulatory Administration (SRA) to convert the “A” sugar to “B” sugar, saying that the country’s production target is way lower than the consumption, which is estimated to be at 2.4 million metric tons (MT).

“If we avail of the US TRQ (tariff-rate quota), this will leave us with 1.99 million MT available for domestic consumption and short of more than 400,000 MT, which the country has to import to fill the domestic consumption,” Zubiri said.

He also pointed out that with the current domestic price of sugar at PHP1,500 per 50-kilo bag and exports to US priced only at PHP1,100 per 50-kilo bag, this in effect will result to the domestic consumers subsidizing the price of sugar export to the US.

Confed agrees with Zubiri’s proposal that the “A” allocation should have been kept as “B” or for domestic use “since we fall short in our sugar production to accommodate and supply the local demand.”

“This allocation could have provided better prices for our local farmers who are in a quandary as to the marginal farm gate prices of sugar in the past three years,” Confed said in a statement.

It is also Confed’s position that only beverage companies will be allowed direct access to sugar imports as they have preferred standard for their soft drink manufacture (bottler’s grade — refined sugar), but it must be emphasized that this should be under the direct supervision of the SRA for a calibrated, timely and transparent import program.