Importing sugar is expensive now

There have lately been a lot of flak directed against Sugar Administrator James Ledesma for allegedly pulling down the millgate price of sugar. And some of his critics assert that he has worked against sugar producers, favoring instead sugar traders.

But that is an argument from the vantage point of only the producers. But one thing that has not been taken into consideration is that Ledesma's moves had been aimed at precisely allowing sugar to seek its own level and not be subjected to manipulation by "non-traditional players".

Sugar prices have settled at P1,200 per Lkg. Although, as pointed out by Bob Cuenca of the La Carlota y Pontevedra Planter Association, the composite remains barely P971 per Lkg.

And that is the point producers are gauging the profitability of their sugar - the composite price.

Ledesma pointed out that the price of sugar shot up to more than P1,350 per Lkg. last week, even more up to P1,400, because of the speculative entry of non-traditional players into the market.

It settled to about P1,200 and below per Lkg. following the government announcement of importation and action against hoarders.

DTI Secretary Peter Favila, the National Bureau of Investigation and the SRA administrator last week inspected warehouses of sugar in Metro Manila and failed to discover hoarding.

Ledesma cited the drop in withdrawals of sugar from mills' warehouses as indicative of the fact that there is enough sugar in the country to service local demand.

He cited that two sugar mills of Negros Occidental had asked permission to rent two additional warehouses for their spillover sugar. The reason for that is the slowdown in withdrawals of the food crystal, Ledesma pointed out.

Luis Tongoy, chair of the Confederation of Sugar Producers Associations Inc., said that importing sugar now will be much more expensive. He said industrial users can buy directly from sugar producers. By importing sugar from outside the ASEAN Region, traders will have to pay the 65 percent tariff. That means imported sugar from the world market will have a landing cost of about P2,400 per Lkg. Even imported AFTA sugar will be levied the 38 percent tariff. Thus, the cost will come higher at P2,000 per Lkg. excluding liens.

Ledesma, however, pointed out that the importation of 50,000 metric tons of sugar by sometime June or July will be undertaken on a counter-trade arrangement. In short, the Philippines will take in tariff free the corresponding amount of sugar it will be shipping out to the US market under the additional share of its US Sugar Quota.

That can be done only under such an arrangement, stressed Ledesma.

In short, what the SRA is doing now is stabilizing prices to allow producers to profit from the actual level of the market. It does not do away with market forces, Ledesma said.

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I attended Saturday the concert of my daughter, Mary Ann, at the CCP with the Philippine Philharmonic Orchestra. For me, as Mary Ann's father, it was certainly ego-boosting as her fingers raced through the keyboard during the Concert In G minor for Piano and Orchestra.

Elder sister, Malou, an official of oil company Total, admitted that she cried as Mary Ann performed. She did not hide her act of wiping tears from her eyes. Bravos rent the air as Mary Ann and conductor Laureate Oscar Yatco repeatedly came back on stage to acknowledge the persistent applause from the audience which included the musical literati of Metro Manila.

Baritone Noel Azcona, an Ilonggo, also received his share of the applause for his interpretation of Fr. Manuel Maramba's La Naval and Te Deum. Fr. Maramba was all aglow as he listened to his compositions being interpreted by Azcona and the UST Liturgikon Vocal Ensemble.

But even my children were surprised when former First Lady Imelda Romualdez-Marcos asked me to come close to her as she congratulated me for Mary Ann's wonderful performance.

And, as her wont, she asked me to have our pictures taken with my daughter. Later, the former First Lady spied me when I was with Maté and Malou at the curbside of the CCP. She then approached me again and expressed the hope that we see each other soon - "not ten years after." A reminder that we last saw each other during the Lions Convention in Bacolod a few years back.

And then when I introduced Maté and Malou as my two daughters - Malou pointed out that they were the non-musical daughters. But Imeldific replied - "but they are so lovely."

It took her just a bit more time to converse with me before she hied off with a convoy of four vehicles.

Well, for once, that was a spiritually uplifting weekend in Metro Manila where I had gone precisely to attend Mary Ann's performance.

Unfortunately, I can't wait for tonight's concert with Nenen and a group of singers from the US Conservatory of Music. But I did not really miss much because until late last night, they were practicing in Mary Ann's and Nenen's house their performance today.

In short, I already had a preview of what they are going to stage tonight.*

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