A lawmaker from Negros Occidental called for the immediate appointment of a new leader in the Sugar Regulatory Administration (SRA) amid the current sugar supply problems.
Negros Occidental Rep. Dino Yulo, a former SRA board member representing farmers, said in a briefing Wednesday the new SRA chief will have to act on major issues such as the exports quota to the United States and the prospects of importation next year.
SRA is now led by Ignacio Santillan as officer-in-charge, a position which has limited executive functions.
Shipments of sugar to the US are under a tariff-rate quota (TRQ) system where specified quantities come in at a relatively low tariff. Imports above a pre-determined threshold are subject to a higher tariff.
The Philippines is among those given an annual allocation of sugar export to the US market at a premium.
The office of the US Trade Representative retained the Philippines’ sugar export quota under the TRQ on imported raw cane sugar for fiscal year 2022 at 142,160 metric tons (MT) raw value that is equivalent to 136,201 MT commercial weight.
In the past, the SRA allowed traders to export sugar originally intended for domestic use and this was replenished by importing from the world market, just to fulfill the US quota.
Yulo said the new SRA administrator must also resolve the provision of fertilizers to sugar farmers as prices of inputs continue to surge.
“Maybe we need (to resolve) three basics of production, one is high fertilizer costs as it was P800 two years ago but it’s now about P2,500 even reaching P2,800 levels, reaching 300 percent increase. (Second) is the price of crude oil which affects all aspects of production from planting to milling as it was P27 during COVID and it’s now P80 to P90 a liter. Third, we cannot blame our partners in the industry, laborers, if they ask for a corresponding wage. They rightfully deserve it amid the high cost,” Yulo said.
He added the SRA may utilize its savings “to jump-start any farm productivity program” as the agency was among those that advanced money to the national government to aid pandemic related programs. – Jed Macapagal
