By IRMA ISIP and JOCELYN MONTEMAYOR
The Philippine Chamber of Commerce and Industry (PCCI) said the Marcos administration should not close its doors on importing sugar as this is the most doable solution that can immediately bring down the price of the sweetener.
This developed after Malacanang bared that the issuance of the sugar order (SO) authorizing the importation of 300,000 metric tons of sugar was illegal and was made without the approval nor the knowledge of President Marcos Jr., chair of the Sugar Regulatory Administration (SRA) Board.
Press Secretary Trixie Cruz-Angeles said at the Laging Handa public briefing yesterday the signatories of the SO No.4, that was initially posted on SRA’s website on Wednesday, are being investigated, including Department of Agriculture Undersecretary for operations Leocadio Sebastian who allegedly signed the resolution on behalf of Marcos.
George Barcelon, PCCI president, said in an interview the decision to import sugar should be subject to a more thorough review, especially on the volume that should be brought in.
Barcelon warned inflation would continue to rise in the coming months with sugar prices spiraling and shortfall persisting.
He added in the end it is the general population that will suffer. High sugar prices will also affect production cost of the country’s food exporters.
Angeles said importation is a “sensitive matter” especially of agricultural products such as sugar.
She said there should be a balance to ensure that the consumers’ and local industry players’ rights are protected and promoted.
Angeles said Executive Secretary Vic Rodriguez has issued a verbal order to create an importation plan that can be used by the government.
“As such, the only response to the query on whether or not an importation was to be made, the President did not assent and it was the executive secretary who issued the order to create an importation plan. It was therefore clear that there is no authorization for the importation of these 300,000 metric tons,” added.#
Alternative
With Marcos’ rejection of the importation, sugar stakeholders are clamoring for an alternative solution.
Enrique Rojas, president of the National Federation of Sugarcane Planters, said pressure “is now on the mills to produce as much sugar as they can.”
“While the President’s decision will translate to higher millgate prices due to the huge demand, we hope that the resulting retail prices will not be too burdensome to our consumers. We hope that retail prices will soften, as more mills start their production early,” Rojas said.
He said the past several years, the Philippines has been a net sugar importer because production cannot cope with the domestic demand from industrial users and households.
“ Importation is a bitter pill to swallow for producers but we need to bite the bullet to stabilize domestic supply and lower the rising retail prices,” Rojas said.
The Samahang Industriya ng Agrikultura supports the President’s scrapping of the planned sugar importation saying this would prompt the Sugar Regulatory Board and the Department of Agriculture to find ways that will support local producers.
Jayson Cainglet, the group’s executive director, in a statement.
said they are not entirely against importation but emphasized that the country must “only import what is needed and upon the explicit approval of the local (sugar) industry.”
The volume of 300,000 MT that was supposed to be imported was decided after an SRA-led consultation with sugar planters, millers, refiners and traders last July 29.
Based on the DA’s monitoring of 13 public markets in the National Capital Region, as of Wenesday, prevailing retail prices are now at P100 per kilogram (kg) for refined sugar, washed sugar at P75 per kg and brown sugar at P70 per kg.
As for the Sugar Regulatory Administration’s (SRA) millsite prices monitoring, composite price of raw sugar as of July 10 was at P2,370 per 50 kg bag, unchanged since June 19’s prices.
The July 10 monitoring was the last for SRA’s database this sugar crop year, citing that milling operations were already terminated after the said date.
Investigation ongoing
“This Resolution is illegal. The chairman of the Sugar Regulatory Board is President Ferdinand Marcos, Jr. As such chairman, he sets the date of any meetings or convening of the Sugar Regulatory Board and its agenda. No such meeting was authorized by the President or such a resolution likewise, was not authorized,” Angeles said.
Angeles did not mention which specific office is doing the probe but said that “investigation is ongoing to determine whether any act that would cause the President to lose trust and confidence in his officials can be found, or if there is malice or negligence involved”.
“In such a case, if such findings are made, then the only determination left will be how many heads are going to roll,” she added.
Apart from Sebastian who signed for Marcos, the other supposed signatories in the document were SRA Board vice chairperson Hermenegildo Serafica, Board member Roland Beltran representing the millers’ sector, and Aurelio Gerardo Valderama Jr. representing the planters’ sector.
“They are under investigation. Let us wait, if a determination can be made and a preventive suspension is issued while the investigation is ongoing. If the investigation is fast, we may see some replacements very soon),” Angeles said.
She assured everyone that due process is observed.
Angeles clarified there was no delegation of authority nor was Sebastian allowed to call meetings or sign resolutions.
Sebastian has previously been authorized to represent the President in meetings if he is unable to do so. (With Jed Macapagal)
