No need to import sugar for now, says SRA chief
Published Oct 1, 2019 12:00 am
By Madelaine B. Miraflor
The Sugar Regulatory Administration (SRA) doesn’t see the need to import sugar really soon amid the call of the Department of Finance (DOF) for reforms in the local industry to “introduce competition”, which basically means allowing the entry of more cheaper, imported sugar into the country.
SRA Administrator Hermenegildo Serafica said that importation is always an option especially when the supply is not sufficient, but as of now, there is no need for it.
“If supply is not sufficient then we will always consider importation, but not that soon anymore because of the importation program that we just implemented, which is based on SO 5. The sugar now are coming in,” Serafica told reporters on Tuesday.
It was just in August when the SRA decided to order the importation of 250,000 metric tons (MT) of sugar, allowing both industrial users and end-users to purchase either standard grade refined sugar or bottlers’ grade refined sugar abroad.
“This will be coming in until October 31 and I think this will be good until next year,” Serafica said.
On the liberalization of sugar importation, Serafica said this will “come into place” and going to be discussed “with the guidance and leadership of Secretary William Dar”.
While he didn’t exactly oppose the stand of DOF on the sugar liberalization, the SRA chief said importation should just serve as an “option” when the supply is not sufficient.
The SRA is mandated by the law to regulate supply of sugar in the country. It is also the government agency tasked to determine when is the best time to import sugar and make such order.
“The restricted level of imports directly affects the level of domestic prices. Although the ATIGA tariff rate on sugar is only 5 percent, the direct action of limiting import volumes increases the level of protection far beyond the 5 percent tariff rate,” the DOF said in one of its recent economic bulletins.
SRA Administrator Hermenegildo Serafica said that importation is always an option especially when the supply is not sufficient, but as of now, there is no need for it.
“If supply is not sufficient then we will always consider importation, but not that soon anymore because of the importation program that we just implemented, which is based on SO 5. The sugar now are coming in,” Serafica told reporters on Tuesday.
It was just in August when the SRA decided to order the importation of 250,000 metric tons (MT) of sugar, allowing both industrial users and end-users to purchase either standard grade refined sugar or bottlers’ grade refined sugar abroad.
“This will be coming in until October 31 and I think this will be good until next year,” Serafica said.
On the liberalization of sugar importation, Serafica said this will “come into place” and going to be discussed “with the guidance and leadership of Secretary William Dar”.
While he didn’t exactly oppose the stand of DOF on the sugar liberalization, the SRA chief said importation should just serve as an “option” when the supply is not sufficient.
The SRA is mandated by the law to regulate supply of sugar in the country. It is also the government agency tasked to determine when is the best time to import sugar and make such order.
“The restricted level of imports directly affects the level of domestic prices. Although the ATIGA tariff rate on sugar is only 5 percent, the direct action of limiting import volumes increases the level of protection far beyond the 5 percent tariff rate,” the DOF said in one of its recent economic bulletins.