Business groups push for 100,000 MT direct sugar importation
Published Oct 3, 2018 12:00 am
By Bernie Cahiles-Magkilat
Business groups yesterday pushed for direct importation of 100,000 metric tons (MT) of sugar for the exclusive use of domestic food processors, whose production and viability have been affected by the high cost of local sugar.
(Photo by Michael Varcas/ Manila Bulletin File Photo)
The Philippine Chamber of Commerce and Industry (PCCI), Philippine Exporters Confederation (Philexport) and Philippine Food Processors and Exporters Confederation (Philfoodex) jointly welcomed the issuance of Administrative Order (AO) 13 by President Rodrigo Duterte lifting the non-tariff barriers and streamlining of procedures to facilitate importation of agricultural commodities amidst the growing concern on inflation that negatively affect the consumers.
In a letter addressed to the Sugar Regulatory Administration (SRA) Administrator Hermenegildo Serafica on September 26, 2018, the groups specifically reiterated their appeal to allow the importation of initially 100,000 metric tons of sugar “for exclusive use of domestic food processors.” This is the third appeal letter by the group to SRA. The letter was signed by PCCI Chairman George Barcelon, PhilExport President Sergio Ortiz-Luis Jr., and Philfoodex President Roberto C. Amores.
“We are now awaiting for the mechanics of this AO 13,” the letter said. As issued by President Duterte, AO 13 directs the National Food Authority (NFA), the Sugar Regulatory Administration (SRA) and the Department of Agriculture (DA) in coordination with the Department of Trade and Industry (DTI) to lift non-tariff barriers and streamline administrative procedures in the importation of such products. Among others, “the agencies were told to… temporarily allow direct importation of sugar-using industries to cut their input cost.”
The group has not since received any feedback from the SRA on the letters it submitted. However, with AO 13, the group is optimistic that SRA will adhere and implement the order.
Local food processors have raised concern on the prohibitive cost of refined sugar in the domestic market thereby making them uncompetitive against sugary food products from ASEAN.
Under the ASEAN Free Trade Agreement, sugar-based food products from the region enjoy preferential tariffs of 5 percent. Additionally, these ASEAN food processors buy their sugar at the equivalent of P26 to P28 per kilo.
“While we agree that our farmers need some assistance, we can no longer justify cuddling an industry at the expense of the greater majority of Philippine consumers and food manufacturing sector that are bearing the brunt of the high cost of this protection. This situation has likewise become a breeding ground for smuggling,” the groups said.
There are approximately 4,000-5,000 domestic food processors using sugar as ingredient, who are part of the 99 percent MSMEs, and benefitting 50-60 million consumers and stakeholders that would take the brunt of high cost of sugary made products compared to the 50,000-60,000 farmers, which can be given alternative source by shifting to high value crop production.
(Photo by Michael Varcas/ Manila Bulletin File Photo)
The Philippine Chamber of Commerce and Industry (PCCI), Philippine Exporters Confederation (Philexport) and Philippine Food Processors and Exporters Confederation (Philfoodex) jointly welcomed the issuance of Administrative Order (AO) 13 by President Rodrigo Duterte lifting the non-tariff barriers and streamlining of procedures to facilitate importation of agricultural commodities amidst the growing concern on inflation that negatively affect the consumers.
In a letter addressed to the Sugar Regulatory Administration (SRA) Administrator Hermenegildo Serafica on September 26, 2018, the groups specifically reiterated their appeal to allow the importation of initially 100,000 metric tons of sugar “for exclusive use of domestic food processors.” This is the third appeal letter by the group to SRA. The letter was signed by PCCI Chairman George Barcelon, PhilExport President Sergio Ortiz-Luis Jr., and Philfoodex President Roberto C. Amores.
“We are now awaiting for the mechanics of this AO 13,” the letter said. As issued by President Duterte, AO 13 directs the National Food Authority (NFA), the Sugar Regulatory Administration (SRA) and the Department of Agriculture (DA) in coordination with the Department of Trade and Industry (DTI) to lift non-tariff barriers and streamline administrative procedures in the importation of such products. Among others, “the agencies were told to… temporarily allow direct importation of sugar-using industries to cut their input cost.”
The group has not since received any feedback from the SRA on the letters it submitted. However, with AO 13, the group is optimistic that SRA will adhere and implement the order.
Local food processors have raised concern on the prohibitive cost of refined sugar in the domestic market thereby making them uncompetitive against sugary food products from ASEAN.
Under the ASEAN Free Trade Agreement, sugar-based food products from the region enjoy preferential tariffs of 5 percent. Additionally, these ASEAN food processors buy their sugar at the equivalent of P26 to P28 per kilo.
“While we agree that our farmers need some assistance, we can no longer justify cuddling an industry at the expense of the greater majority of Philippine consumers and food manufacturing sector that are bearing the brunt of the high cost of this protection. This situation has likewise become a breeding ground for smuggling,” the groups said.
There are approximately 4,000-5,000 domestic food processors using sugar as ingredient, who are part of the 99 percent MSMEs, and benefitting 50-60 million consumers and stakeholders that would take the brunt of high cost of sugary made products compared to the 50,000-60,000 farmers, which can be given alternative source by shifting to high value crop production.