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However, industry stalwarts opposed the tax-free importation, citing a possible loss in government revenues amounting to 2 billion pesos (US$43.3 million). Sugar cooperative groups led by Jose Maria Montinola, chairman of the Victoria Milling Corporation Farmers Multipurpose Cooperative argued the situation does not merit the importation of sugar because it is the current peak of the milling season and local sugar would be in abundance in the domestic market.
He said what the government can do to stabilize soaring prices of sugar is to remove the 12 percent expanded value-added tax imposed on sugar products, which would lead to cuts in domestic prices of sugar by an average of 5 to 6 pesos (US 10-12 cents) per kilo.
Grassroots organizations also supported the call to stop the importation of sugar on the grounds that the alleged sugar crisis was fabricated and was meant to push prices in the domestic market to assure huge profits for members of the sugar cartel.
The sugar advocacy groups in a joint press conference this week said the president should stop NFA from importing 150,000 metric tons of sugar tax free, warning that the move would pave the way for massive dumping of foreign sugar products. The groups, composed of sugar workers and consumers, asserted the flood of sugar imports would not guarantee that sugar prices will come down because the sugar cartel dictates the distribution, supply and pricing of sugar products, whether these are locally produced or imported.
Activist farmer leader Danilo Ramos, secretary general of the Kilusang Magbubukid ng Pilipinas, said there is no dramatic indicator for the retail price of sugar to increase as mill gate prices are relatively low.
Citing a report by the Sugar Alliance of the Philippines, an assembly of sugar millers and big planters, Ramos said raw production had risen by 14.7 percent, refined production by 41.74 percent, and even the milling rate of sugarcane to sugar had increased by 4.19 percent. In short, there is no sugar shortage.
Sugar workers said the current spike in the prices of sugar products was orchestrated by government officials in the Department of Agriculture and the Sugar Regulatory Administration by creating public panic over a fabricated shortage of sugar to justify price hikes, enrich the pockets of big sugar traders, make commissions and seek approval of the importation of sugar from foreign sources abroad.
Experts agreed, adding that sugar officials and agriculture secretary Arthur Yap had some explaining to do as to why the price of sugar is going up to an unprecedented 52 pesos (US$1.12) per kilo despite the government assurance that sugar supplies were sufficient for the 2009 and 2010 crop years.
Last December the price of sugar topped 42 pesos per kilo, but in January alone it rose to 52 pesos, leading to fears the price will vault as high as 60 pesos.
Ronald Dagu-ob, leader of a sugar farmers group in Negros Island, said the province of Negros supplies 60 percent of the country’s sugar requirements. Combined with supplies from other sugar-producing provinces the country would have more than enough supply to last all year round, he said.
In a related development, the Pamalakaya fisherfolk alliance asked Senate President Juan Ponce Enrile and House Speaker Prospero Nograles to call a special session of Congress on the issue of sugar following reports that the government will resort to sugar imports to the detriment of the local sugar industry and the public.
The group said this could be done by calling a special session where lawmakers would craft an emergency bill calling a temporary halt or permanent cessation of the importation of sugar products.
Sugar is a highly explosive commodity in the Philippines, like rice. If not properly addressed and promptly solved, this looming sugar catastrophe might lead to earthshaking agrarian protests, labor unrest and consumer revolts. This kind of social volcano is indeed not sweet, but bitter, and could be bloody.
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(Gerry Albert Corpuz is a correspondent of Bulatlat.com, an alternative Philippine online news site. He is also head of the information department of Pamalakaya, a national federation of small fisherfolk organizations in the Philippines. His website is www.pampil.wordpress.com, and he can be contacted at themanager98@yahoo.com. ©Copyright Gerry Albert Corpuz.)
