Manila 6th district Rep. Benny Abante is backing calls to allow industrial users to directly import sugar for their production needs.
This is one way for the manufacturing agency to mitigate the impact of El Niño, or the extended dry season.
Cong Abante favors direct sugar importation for industrial users; here's why
At a glance
Manila 6th district Rep. Benny Abante is supporting proposals to allow industrial users to directly import sugar for their production needs as a way for them to mitigate the impact of El Niño.
In his radio program "Kongreso Ngayon At Your Service" over DZME on Monday, April 24, Abante noted that the projected dry spell threatens to disrupt sugar production as well as the supply chain.
As such, he said measures allowing this direct importation must be implemented immediately.
"I support the proposal. I think that should happen as soon as possible. We need to do whatever is in the best interest of the public," said Abante, who sits as the vice chairman of Good Government and Public Accountability committee in the House of Representatives.
He cited the loss of jobs in the manufacturing sector as a possible negative effect should a sugar crisis happen during the El Niño period or the extended dry season.
Abante also suggested that current laws be reviewed to see what is preventing industrial users from directly importing sugar for their needs.
"I don't know why they don't allow that anymore, what is the reason why they are not allowed? What is the basis of the law?" Abante added.
The veteran lawmaker also called on government to allow more players to import sugar during the El Niño period to ensure a stable supply and remove unwanted competition between industrial users of, and local consumers to the country’s sugar supply inventory.
Under the current policy, the Philippines allows sugar imports of up to 440,000 metric tons (MT) through the minimum access volume (MAV) mechanism, which sets a lower tariff rate for these imports.
However, due to the onset of El Niño and its potential impact on the local sugar industry, allowing industrial users to import sugar beyond the MAV limit would act to stabilize the country's sugar supply chain, Abante, a former deputy speaker, said.
Apparently, the Department of Agriculture (DA) is already studying proposals to allow industrial users of sugar to directly import as a way to keep the supply chain stable and prevent price spikes.
In an interview over DZBB radio on Sunday, DA Deputy Spokesperson Rex Estoperez confirmed that the government is looking at the proposals.
"We are looking at proposals to allow for more importation aside from the 440,000 MT imported through the [MAV] mechanism. For now, we are awaiting instructions from the President on this matter, said Estoperez.