President Gloria Macapagal-Arroyo yesterday said the government is stepping up the temporary importation of sugar so hoarders will not make money from their illegal activities.

"To teach (these hoarders) a lesson, I have authorized the importation of sugar," Arroyo said.

Sugar Regulatory Administrator James Ledesma said this means the SRA will step up the planned importation of 50,000 metric tons of sugar from July to as soon as possible.

Ledesma had earlier said that the importation was necessary to end speculation of a tightness in domestic sugar supply that was causing sugar prices to rise.

Yesterday refined sugar was selling at P36.50 to P40 a kilo and raw at about P30 to 35 a kilo, he said.

The hoarders are forcing us to change our plans on when to import, he said.

Landed cost of imported sugar at today's world market prices would be P1,550 per Lkg, he said, but he added that prices fluctuate from day to day.

The Sugar Board on Monday also issued an order for the allocation of B2 sugar that will place one half percent of the country's sugar production as reserve sugar to be sold to the National Food Authority at P950 per kilo. The sugar in turn will be sold at NFA rolling stores at about P30 per kilo, Ledesma said.

The President also assured the public yesterday that the importation would only be on a temporary basis and would be used just to show these hoarders "that they're not going to make money out of the hoarding."

12% VAT STARTS

Meanwhile, a statement from the Office of the Press Secretary said the president also ordered the Department of Trade and Industry to monitor closely the prices of other basic commodities and to prosecute unscrupulous traders who would try to make a profit from the full implementation of the Reformed Value Added Tax today.

The R-VAT Law (R.A. 9337) allows the President to raise the VAT on commodities from 10 percent to 12 percent as long as certain "conditions" are met for its implementation. Finance Secretary Margarito Teves had earlier recommended the VAT increase to the President.

"We have to make sure there is no profiteering and that nobody takes advantage of the lack of information," the President said in the press release.

She added that the traders should not raise prices of their commodities unscrupulously because the additional two percent "is a very small increase if you have to be arithmetical about it."

"If there are sudden, unusual increases in prices, they are not justified," the press release quoted the President as saying.

GO INTO LIVESTOCK
RAISING, GUV SAYS

Meanwhile, Gov. Joseph Marañon yesterday is urging sugar planters to use their increased earnings to diversify into other products, including livestock-raising.

He said sugar prices go through a cycle of high and low prices.

We have to ensure that in case sugar prices go down, at least we will have a fighting chance to survive in Negros, he said.

Livestock-raising does not need more land area, it will allow for continued sugar production, he also said.*CPG

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