Sugar producers back suspended import hurdles
MANILA, Philippines — The Philippine Sugar Millers Association Inc. (PSMA) and the Philippine Association of Sugar Refineries Inc. (Pasri) have expressed their support for a Sugar Regulatory Administration (SRA) order requiring entities to pay a fee and secure clearance for importing alternative sweeteners.
In a statement on Friday, the PSMA and Pasri said Sugar Order (SO) No. 6 issued earlier won’t restrict the entry of imported sugar alternatives or significantly affect consumer prices.
“Reading through the order, it is clear that it does not impose restrictions on the importation of alternative sweeteners. It only requires an SRA clearance for release—which is not the same as an import permit,” Pasri president Renato Cabati said.
READ: Regulator holds off import permits, fees for sugar stand-ins
The groups said that the import fee of P60 per metric ton for other types of sugar, except for fructose—equivalent to just P0.06 per kilogram—will not have a substantial impact on production costs and food prices.
Cabati also said the SRA directive’s goal might be to establish uniform regulations for both sugar and other sweeteners.
Article continues after this advertisement“Anyone can still import sweeteners, provided they comply with the clearance process. The fees and requirements outlined in the order are standard procedures for sugar importation,” he added.
Article continues after this advertisement‘Crucial tool’
PSMA president Terence Uygongco said the SRA directive will be a “crucial tool” in getting a clearer picture of the local sugar market by accurately assessing the supply and demand situation.
“As a regulatory agency, SRA must have its own accurate figures on all factors affecting the sugar market. It cannot solely rely on external sources, such as the Bureau of Customs, to determine sugar and sweetener demand,” sugar groups said.
The SRA announced on Thursday the suspension of SO 6 following concerns raised by various industry groups about processing delays and the corresponding expenses for compliance. It was supposed to take effect this month.
The SRA issued SO 6 following the “grave concern” raised by sugar industry players over the alleged unregulated importation of certain “sugars” and “sweeteners” into the country.
SRA Administrator Pablo Luis Azcona said they have received letters and are actively reaching out to set up meetings with the concerned groups, adding the Department of Agriculture will facilitate the dialogues to address their specific fears and concerns.
Azcona has repeatedly allayed their fears, saying the SRA has not received any reports of delays or disruptions to business operations since they started issuing import clearances for other types of sugar in 2017.
According to the Federation of Philippine Industries (FPI), the SRA order is “another form of red tape” that could hurt several local industries and their hundreds of thousands of workers nationwide.
The FPI said the order will merely result in bureaucratic inefficiencies, increase the cost of doing business—particularly for members of the Philippine Confectionery Biscuit Snack Food Association—and raise selling prices of beverage and confectionery products.
