The government should allocate its planned sugar importation equally between industrial users and sugar producers, according to the Confederation of Sugar Producers Associations (CONFED).
In a letter to the Sugar Regulatory Administration (SRA) on Monday, the country’s largest planters’ federation also called on government “to exercise transparency, fairness and accountability in the implementation of the proposed sugar importation program.”
CONFED also reiterated only 350,000 metric tons (MT) of sugar must be imported and allocated on a 50:50 ratio between industrial users on one hand and sugar producers and other interested accredited sugar traders on the other.
The group led by its president Aurelio Gerardo Valderrama Jr. said the 350,000 MT of sugar should arrive in two tranches of 175,000 MT each on July and August. This will coincide with the end of the current milling season and before the start of the next milling season and will ensure imports will not depress millgate prices.
CONFED said of the volume, 300,000 MT should be refined and 50,000 MT should be raw.
It said sugar farmers and millers, through their federations, associations or cooperatives which are accredited sugar traders or through other accredited sugar traders should be qualified to apply for and import their allocation of 50 percent of the proposed volume.
For sugar producers, CONFED said the importation allocation should be based on their percentage of production in crop year 2021-2022. For industrial users, allocation should be based on their SRA-verified requirements, as determined by their record of excise tax or value added tax payments and subject to voluntary submission of applications and record of actual importation by accredited sugar traders.
To ensure transparency, CONFED said all applications for importation should be submitted within five days upon the effectivity of the sugar order.
The group said to protect all stakeholders, evaluation of applications should be conducted and immediately awarded and announced within 10 working days after the deadline of submission.
The government is finalizing the volume of sugar it will bring in this year but the SRA said the initial suggestion of 450,000 MT to fill up two months-worth of buffer stock, is the working number. Jed Macapagal
