With a rally planned this coming Labor Day, Monday, May 1, the General Alliance of Workers Association (GAWA), through Secretary-General Wennie Sancho, announced their demonstration would also include the current issue surrounding the importation of high fructose corn syrup (HFCS) by companies like Coca-Cola, which they, along with people like Negros Occidental Governor Alfredo Marañon, Jr., have called for a boycott.
He called HFCS a labor issue “because it involves the employment of workers in the sugar industry.”
The labor leader went on to explain how he believes his constituency would best be served.
“If sugar prices are high, it will assure the livelihood of sugar workers,” he declared.
Despite the Philippines being a place where the government routinely suspends the laws of supply and demand (via price controls), in terms of forcing commodity prices up, it will only be disastrous. In the short term, perhaps the farmers and laborers will see an uptick in their take-home pay, but once buyers find alternatives, those sales will begin to decline and, instead of lower wages for laborers, it will be no job at all.
Former Sugar Regulatory Administration (SRA) head Rafael Coscolluela, who also previously served as Negros Occidental governor, stated, higher prices will have an impact on a wider scale than just the one crop.
“It will raise the price of products,” he explained. “The expected result is there will be less demand for sugar.”
He previously suggested the sugar industry not take such a hardline with Department of Agriculture Secretary Manny Piñol in his pursuit for a win-win situation. However, that resolution, which would require beverage makers Coca-Cola and Pepsi Cola to purchase more local sugar, was immediately considered “unacceptable” by the Sugar Alliance of the Philippines (SAP).
Earlier this month, SAP spokesperson, Atty. Dino Yulo, revealed how his organization viewed the beverage maker – which made it very apparent negotiations would truly be fruitless.
“All their pronouncements will be doubted and their sincerity will always be questioned,” he explained. “How sure are we that they are being truthful in their claim it’s pure sugar?”
Taking a look at a 2008 study by the Organization for Economic Co-operation and Development (OECD) on the consequences of rising food prices, they noted, “Poor consumers in developing countries, and food importing developing countries overall, will have to spend an even higher share of their limited income on food.” They added, in some cases, the situation may become so dire that humanitarian need would be necessary.
As earlier stated, the OECD also pointed out, as a result of increased prices, “In general, commercial producers of these commodities will benefit directly from higher prices.” However, a prolonged practice will lead to the former, with rising prices affecting everybody else – unless this is what the entire situation is about, only protecting one sector and disregarding the welfare and concerns of others who reside in the province.
The International Monetary Fund (IMF) looked at the impact of high food prices in developing countries back in 2013. They report other countries, when faced with increases in food prices, have resorted to rioting and unrest – ironically, Bacolod Lone District Rep. Greg Gasataya predicted similar circumstances if HFCS importation continues, saying back in February, “Poverty and hunger will result to turmoil causing chaos in the erstwhile peaceful island.”
The IMF claims price hikes, which will result if GAWA gets its way, could potentially cause turmoil, however, the Bacolod City congressman believes the same will occur if the status quo remains – seems like the region is screwed either way?
One of the suggestions the IMF put forward was offering temporary subsidies to relevant sectors. They also suggested countries avoid implementing price controls, explaining, “[They] tend to raise world market prices further, may be a disincentive for producers, fail to help the poorest, and drain scarce resources.”
Even current SRA head, Atty. Anna Rosario Paner, recently took the initiative on commodity prices and wrote a letter to the Department of Trade and Industry (DTI) requesting a reduction in the retail price of sugar.
“The average retail price of refined sugar should at least be P50,” Paner stated.
She noted sugar is retailing around P56, which she called “expensive.”
The only clear way through the situation is formal negotiations, which, as the agriculture secretary has pointed out, results in a win-win. Unfortunately, when involved parties are only interested in either a perceived personal glory or only seeing their side benefit, there isn’t much left to discuss; causing an impasse and an industry that sees no way up, especially with rumblings HFCS may potentially develop domestic processing./WDJ