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Bacolod City, Philippines Wednesday, February 15, 2006
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CONFED hails move of
SRA on importation

The Confederation of Sugar Producers' Association Inc.- Negros-Panay Chapter commended the move of Sugar Regulatory Administration James Ledesma to oppose plans of direct and duty-free sugar importation.

The position of SRA will definitely protect the local sugar industry particularly during this milling season and with ample sugar supply in the market, CONFED chairman Luis Tongoy said.

Beverage companies, particularly Alfredo Yao of Asiawide Refreshments Corp., earlier called on the national government to allow them to directly import sugar at the time when sugar prices were high affecting their production costs.

Instead, they urged Asiaworld Resources and other industrial users to buy directly from planters association/cooperatives to ensure the availability of sugar for their manufacturing operations. Asiaworld Resources previously mentioned that they procure sugar from traders that dictate prices to them.

The CONFED officials said that the current levels of domestic sugar prices are truly market-driven and not manipulated, as the NBI/SRA/DTI task force did not find any evidence of sugar hoarding.

Ledesma acknowledged that while the government cannot stop anyone from importing, "we will ensure that they pay the corresponding tariffs," adding that at this level, "it will not be viable for anyone to import sugar."

CONFED opposed the request of Yao as detrimental to the sugar industry and its more than five million stakeholders, particularly the industry's 80 percent small sugar planters.

"The industry together with the SRA administrator stands strong that to import today is very impractical as domestic supply is at its peak and bringing in of world sugar will entail great loss of importers," Tongoy said.

He stressed that "such importation must only be allowed into the country if they pay the corresponding levies and import duties."*RLE

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