Group wants probe on sugar market abuse

BACOLOD CITY, Philippines — The Department of Agriculture (DA) and Sugar Regulatory Administration (SRA) are being urged to investigate possible “sugar market abuse,” which aims to prevent the destabilization of the sugar industry.

The Save the Sugar Industry Movement (SAVE-SIM) meanwhile called on the DA and SRA to be vigilant against sugar market abuse that will affect directly and indirectly about two to three million Filipinos.

“When a group of sugar producers allegedly has the ability to maintain high prices of sugar by reducing its output or by withholding supply, and offering sugar at a price, which is significantly higher, they are said to be exercising sugar market abuse,” SAVE- SIM convenor Wennie Sancho said.

The group has submitted a position paper to the SRA, expressing its vehement opposition to the government’s plan to import 450,000 metric tons (MT) of sugar.

The United Sugar Producers Federation, the largest sugar association in the country, has expressed support for the proposed importation of 450,000 MT of refined sugar to stabilize retail prices.

The Confederation of Sugar Producers Associations, however, has recommended the importation of a more conservative volume of sugar, less than the 450,000 MT being proposed by the DA and SRA, and intended to serve as a two-month buffer stock.

On the other hand, the National Federation of Sugarcane Planters also said it remains consistent in its position that the importation should be only for the specific volume needed for the buffer stock, and it should arrive in several properly scheduled tranches after the milling season.

Sancho stressed the need for sugar planters to unite to ensure that the effects of sugar destabilization will be prevented to protect sugar workers.

He noted that 60 percent of sugar in the Philippines is being supplied by Negros island.

He pointed out that the sugar industry would be destabilized if there is an oversupply of sugar.

Sancho also warned that oversupply of imported sugar in the country would lead to plummeting sugar prices due to a glut or excessive quantity.

He said the sugar industry would collapse, and there would be an economic catastrophe unparalleled in scope and magnitude.

“The economic and social cost will be devastating, and we will experience undeserved suffering,” he added.