The Confederation of Sugar Producers Associations Inc. said they will not object much to importation by beverage companies if it will be done after the milling season in the Philippines and will be imposed the necessary import duties in their letter to Trade and Industry Secretary Peter Favila, who had earlier said that he is supporting the proposal of beverage companies to import sugar.

Import duty for ASEAN countries is 38 percent while 65 percent for countries outside the Asean Free Trade Area.

Confed head Reynaldo Bantug, along with George Zubiri and Jose Luis Tongoy, said that allowing these firms to import sugar now would lead to too much sugar supply and cause prices to plunge to the detriment of farmers.

They added that to reduce intermediation costs, they suggest that beverage companies to directly procure sugar from their member-associations/cooperatives.

They also said they want to correct the impression that there is shortage in sugar supply, adding that sugar stock balance as of Feb. 19, 2005 stands at 801,216 metric tons - 642,494 Mts of raw sugar and 158,722 Mts of refined sugar.

They said that current levels of sugar prices are justified, considering that production costs have gone up drastically and increases in world oil prices have driven cost of fertilizers to unprecedented highs together with increases in costs of transport, hauling and spare parts.

Farmers have to be allowed a decent return on their investment to pay debts, promote production and investments in improving productivity, they added.*

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