Sweets makers agree to pay tariff on sugar imports

A group of confectioners has expressed willingness to pay an import duty on sugar if the government’s plan to liberalize the sugar industry would push through.

The Philippine Confectionery Biscuits and Snack Association (PCBSA) told reporters on Wednesday they were willing to pay a tariff rate of between 20 and 25 percent for sugar. The government was pushing for 30 to 40 percent.

Currently, imports approved by the Sugar Regulatory Administration (SRA) are exempted from duties.

PCBSA president Kissinger Sy said that even with the proposed tariff rate, confectioners would still be able to grow their sales by 10 to 15 percent given the huge disparity between local and international prices.

As of early-January, local sugar costs P2,002 per 50-kilogram bag, which is 25 percent higher than imported sugar at P1,500 per LKg.

The 18-member group said the association alone would be able to save P105 million monthly from sourcing sugar abroad, which they could use to develop their operations and grow their market share.

“The SRA’s current importation scheme is restrictive because it only allows traders and importers to import, which is not really our line of business. We just want to be able to import cheap sugar to continue our operations, and we’re not asking for too much since our market share is less than 5 percent of the local sugar market,” he added.

More than the high sugar prices, the group added that the local sugar industry was finding it difficult to meet the industries’ demand especially after beverage companies shifted to using local sugar to avoid paying heftier taxes from using high-fructose corn syrup.

To recall, the SRA allowed the importation of sugar last year to meet the industries’ sugar requirements.

Officials of the SRA, industry groups and local government units engaged in sugar production have called on President Duterte to oppose the impending liberalization, adding that the move would kill the industry and displace thousands of workers, majority of which are marginalized.