Sugar industry players make for bitter foes

The tug of war between food processors and local sugar producers and millers continues to intensify as stakeholders await the decision of economic managers whether or not the government would liberalize the industry.

Philippine Food Exporters Inc. (Philfodex) has urged the Duterte administration to fast-track the deregulation of sugar—which could mean cheaper imports for their operations —but the Confederation of Sugar Producers immediately opposed the move, noting it could kill the local industry when prices and supply have stabilized.

“Our domestic processors, comprised mostly of small entrepreneurs, are really hurting from Asean competition. The high cost of sugar in the local market is killing the local industry, but favoring foreign competition,” Philfodex president Roberto Amores said in a statement.

But according to Confed, sugar prices have not increased drastically in the past months.

It said the government has yet to fulfill its promise of modernizing the local sugar industry through the Sugar Industry Development Act (Sida).

The Sida fund, which was supposed to have an annual subsidy of P2 billion, has been reduced to P500 million due to underspending and bureaucratic bottlenecks. Farmers have been forced to rely on traditional farming anew.