By Dominique Gabriel G. Bañaga
The United Sugar Producers Federation of the Philippines (UNIFED) asserted yesterday that beverage companies in the country should buy locally-produced sugar.
UNIFED made the statement after beverage firms forwarded a request to President Ferdinand “Bongbong” Marcos, Jr. allowing industrial users to directly import premium refined sugar.
According to UNIFED President Manuel Lamata, the Sugar Order No. 6, which allows the importation of 440,000 metric tons of the commodity, is intended for local consumers only.
Industrial users have to buy locally-produced sugar because their locally-made products are also being consumed by local consumers, Lamata said.
“Why should they [companies] be given the privilege to buy cheaper sugar from Thailand which is subsidized by the government and sell their products to us at a high price,” he asked.
The UNIFED President said earlier these companies have earned billions of revenues and they can surely protect their workers and their interests for decades to come.
But allowing them to directly import will not just kill the sugar industry, but kill the millions who are dependent on this industry just so they can further enrich themselves at their own expense, Lamata added.
The group appealed to Marcos to deny the request of beverage companies to directly import sugar for their needs.
In a letter dated March 22, the companies asked for a meeting with Marcos.
The firms’ officials said they represent industrial manufacturers in the food and beverage industry, which comprise over 90 percent of the industrial users that require refined sugar for production.
“Since last year, the Philippine sugar market has faced a supply crisis that threatens our business operations as well as the livelihoods of tens of thousands of workers,” the firms’ representatives stated.
“We appreciate the steps that your office has taken to address the issue of sugar scarcity and help reduce the gap between local production of sugar and production demand,” they added.
According to them, last year’s issuance of Sugar Order No. 2, which allowed industrials to import their sugar allocation directly, brought them much-needed hope and optimism to continue their production at least until a longer-term and more sustainable solution is put in place.
They also stated that in recent days, the country’s sugar supply has depleted further, with demand far outpacing domestic supply.
The surge in prices has continued unabated, with imported sugar now being priced with an 80 percent markup from the landed cost, and retail prices of available sugar having soared to P70 per kilogram.
“Further, we have received reports of outright refusal on the part of some traders to provide price quotes to industrial users,” it stated./DGB, WDJ