Food processors change stance on sugar importation

MANILA, Philippines — The Philippine Chamber of Agriculture and Food Inc. (PCAFI) is asking the government for an annual sugar import allocation of around 105,000 metric tons to help stabilize supply.

Processors are actually requesting a maximum of 10 percent sugar import allocation out of the country’s annual sugar production of 2.1 million MT.

PCAFI, however, said even just half of the 10 percent or 105,000 MT will be good enough to significantly raise food processors’ global competitiveness as this will cut sugar cost for food manufacturing from P55 to P30 per kilogram.

“We will issue a petition to be submitted to Secretary (William) Dar and President 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 Danilo Fausto, president of PCAFI.

Philippine Food Processors and Exporters Organization (PhilFoodex) president Roberto Amores said the processors would not ask for the entire 10 percent.

Initially, only 50 percent of each company’s sugar requirement based on its production program is proposed to be granted.

“As a processor, you will submit your requirements based on your production program and sales. This initial allocation per processor will establish credibility of the processor,” Amores said.

“The processor should guarantee that 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,” he said.