Government urged to ensure stable sugar prices, supply

MANILA, Philippines — Heightened concern over the supply and prices of sugar has the Philippine Chamber of Commerce and Industry (PCCI) cautioning the government against inflationary consequences particularly in food and basic commodities.

PCCI president George Barcelon has sent a letter to Palace-appointed Private Sector Advisory Council strategic convenor, Sabin Aboitiz, to seek a sit-down and discuss how the high cost of sugar has put the food manufacturing and processing industry at a disadvantage.

“We are calling on our government to assure our food manufacturing industry that there is enough and sufficient supply of sugar at reasonable cost to be competitive with our neighbors in ASEAN (Association of Southeast Asian Nations),” Barcelon said, adding that sugar is an important component in food manufacturing and processing.

Barcelon said the industry is requesting an allocation exclusively as input in food production so that local food manufacturers can compete with the country’s ASEAN counterparts selling various food items.

He emphasized that the prevailing world market price of sugar ranges only from P32 to P35 a kilo.

Latest data from the Department of Agriculture showed that the prevailing price of sugar in Metro Manila markets ranges from P86 per kilo to P110 a kilo for refined sugar, P82 per kilo to P95 per kilo for washed sugar, and P78 per kilo to P95 per kilo for brown sugar.

“Government is cognizant of shortages from local sugar millers and, thus, allowed limited importation,” Barcelon said.

“The lower cost of sugar will help mitigate inflation when enough quantities are allocated for local food and beverage sectors. The employment and economic activities are crucial for our country and her citizens,” he stressed.

The PCCI, through its Agriculture and Fishery Committee, has been advocating with the government to allow small food processors and manufacturers to import refined sugar at 10,000 bags of 50 kilos per bag monthly since 2015 but this has never been granted.

In September last year, the PCCI called for a representation of the business sector in the board of the Sugar Regulatory Administration (SRA) to ensure that voices of all sectors, including the food exporting and manufacturing industry will be heard.

PCCI agriculture committee chairman Paul Cuyegkeng said earlier the proposal is essential to strike a balance between the needs of farmers, millers and food manufacturers, which are composed largely of micro, small and medium enterprises (MSMEs).

“We believe that all sectors must be heard. Our local food processors and manufacturers, which are mostly MSMEs, have long been burdened with the high cost of refined sugar and sadly, they are not able to compete with our counterparts in ASEAN, whose sugary-made products are sold way cheaper than ours,” Cuyegkeng said.

At present, the SRA board has one representative each from the millers and planters sectors.

The committee said that the government should engage the private sector to determine the requirements of MSMEs and consider them in the import request in order to continue operations.

In addition, the group said that the government should also look into modernizing the milling industry to increase production and provide incentives to attract investments in the agriculture-related manufacturing sector.