Sugar Alliance considers proposed ‘win-win’ solution ‘unacceptable’

Posted by watchmen
April 1, 2017
Posted in TOP STORIES

By Dominique Gabriel G. Bañaga

In response to the “win-win” solution proposed by Department of Agriculture Secretary Emmanuel Piñol, which has beverage makers Coca-Cola and Pepsi Cola purchasing more local sugar, the Sugar Alliance of the Philippines (SAP) called it “unacceptable” and claimed the resolution favors the beverage companies.
“Secretary Piñol seems to be seeing only one side of the equation,” SAP said in a statement, yesterday.
According to the cabinet secretary, both Coca-Cola and Pepsi Cola plan to purchase sugar in advance for next year, in an effort to ease the pressure on sugar planters. He added, manufacturers would also reduce their high fructose corn syrup (HFCS) to sugar ratio from 90:10 to 80:20.
“Both soft drink manufacturers have relied on HFCS since 2010, when the price of local sugar doubled,” Piñol explained. “They just need enough time to adjust their processing, manufacturing process, [and] install new clarification machines to convert raw sugar to syrup that can be used in their soft drinks.”
In their rebuttal, SAP rebuked the proposed changes.
“We take offense at the offer from Coke to increase their consumption ratio,” they stated.
In discussing the adjustments the soft drink makers said would be needed in order to process a larger volume of sugar, SAP said, “Can’t the secretary see what six more months will do to the very farmers he is mandated to protect?”
“We are baffled that the Secretary continues to speak for the beverage companies,” they added.
Recently, former Sugar Regulatory Administration (SRA) chief Rafael Coscolluela said, “We need to accept the reality that Philippine sugar is expensive,” in his analysis on why companies like Coca-Cola are using HFCS. While SAP admitted the cost of local sugar is high, they said farmers need to be provided government subsidies, saying, “Then maybe, and only maybe, we can survive.”
Earlier in the week, after Piñol suggested the “win-win” solution, labor groups in Negros Occidental declared him “persona non-grata,” or unwelcome./WDJ

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