After President Ferdinand “Bongbong” Marcos Jr. reportedly shut down a proposal to import 300,000 metric tons (MT) of sugar, House Ways and Means Committee Chairman Rep. Joey Salceda offered some solutions to the country’s domestic sugar supply issue.

Read: https://mb.com.ph/2022/08/10/marcos-rejects-proposal-to-import-300000-mt-of-sugar/

Amid the soaring prices of sugar–which are now sold at P100 per kilo–Press Secretary Trixie Cruz-Angeles confirmed that Marcos rejected a proposal to import 300,000 MT of sugar, 150,000 MT of which was to be used for commercial sweetened beverages.

“The President’s decision highlights just how sensitive this issue is. The sugar sector needs 1.3 workers per hectare cultivated, versus just 0.7 workers for the agriculture sector in general, and 0.6 workers for rice. That means sugar is among the most labor-intensive sectors in agriculture, losses among sugar farms will be more displacing among sugar workers than rice tariffication was for rice farmers,” Salceda said on Thursday, Aug. 11.

Thus, the economist-lawmaker representing Albay’s 2nd district made the following suggestions to address domestic sugar supply issues:

“ can pursue programs to ensure that the domestic harvest (which should begin around this month) will be efficiently milled and processed to avoid wastage. We should also look at the implementation of the Sugar Industry Development Act, particularly the P2 billion annual mandated appropriations for the programs under that law,” he said.

“On the demand side, the National Biofuels Board can also exempt sugarcane from being among the sources of biofuels required to be added to domestic petroleum under the Biofuels Law. VP (Vice President) and Sec. Sara can also hopefully issue a ban on softdrinks from being sold within public schools, as they are both unhealthy and, given current circumstances, uneconomical,” Salceda continued.

“I instead propose that major sugar imports be timed during leaner months, while imports during harvest season be in more carefully considered tranches. Before a sugar import order is considered, its effects on sugar farmers should be considered, and mitigating measures should already be proposed. Even the Rice Tariffication Law had such mechanisms,” the lawmaker added.

Salceda further elaborated that since half of the 300,000 MT was to be used as bottlers' grade sugar or for use in commercial sweetened beverages, producers would likely have to resort to High-Fructose Corn Syrup (HCFS).

According to Salceda, HCFS-sweetened beverages have higher excise taxes imposed on them at P12 per liter as opposed to sugar-sweetened beverages at P6 per liter. He says if the funds collected from the HCFS sweeteners excise tax are collected, it could be used to bolster the domestic sugar sector.