Three planters groups yesterday said they are opposing the approval by the Sugar Regulatory Administration of the importation of 40,000 metric tons of sugar through Customs Bonded Warehouses, saying domestic millgate sugar prices have dropped by P150 per Lkg that translates to losses of P.5 billion.

Enrique Rojas, president of the National Federation of Sugarcane Planters; Manuel Lamata, president of United Sugar Producers Federation of the Philippines, and Francis Treñas, president of Panay Federation of Sugar Farmers, said in a letter to James Ledesma, SRA administrator, that they would like to express their grave concern over the approved importation by SRA of 40,000 MT of sugar by the CBWs.

Sugar brought in by CBWs is supposed to be used by food processors of products extended for export.

They said the sugar industry allocated 6 percent of the crop year 2006-2007 production for "D" or world market sugar on recommendation by the Sugar Alliance of the Philippines that the CBWs, instead of directly importing their sugar requirements from the world market source their needs from "D" allocation that is about 132,000MT this crop year.

"This importation by the CBWs, being an oversupply of their requirements, has very high possibility of being diverted into the domestic market, thereby further depressing our B (domestic) sugar prices," the leaders of the three planters groups said.

With 2007 being an election year, they also said the importation might be a source of numerous speculations. This is a scenario which the sugar industry cannot afford given the present high production cost of farmers, they said.

"We believe that our 'D' sugar allocation can address whatever sugar requirement which the CBWs might have at a cheaper price. Hence, there is no need for the CBWs to import sugar, with its attendant risk of the imported sugar being diverted to the domestic market," they said. They asked the SRA to stop approving the sugar allocation for imports by the CBW and instead encouraged the CBW to buy the industry's D sugar.

NO NEED FOR ALARM

Ledesma said the planters have nothing to be alarmed about as he did not approve the importation of sugar by the CBWs.

Ledesma said what he did was to approve a 32,000 MT allocation for the CBWs to buy from the country's D sugar.

But Lamata and Rojas yesterday insisted that the CBWs are importing sugar into the country.

Lamata said the imported sugar was coming in through the Manila port.*CPG

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