President Macapagal asked to stop sugar importation

BACOLOD CITY— A Negros surgar farmers' group on Tuesday appealed to President Macapagal-Arroyo to hold off the importation of 150,000 metric tons of sugar until the end of milling season so it could be determined if it was necessary.

Trade Secretary Peter Favila has pushed for the importation of sugar amid the product’s rising prices in the retail market.

But Jose Maria Montinola, chairman of the Victoria Milling Corp. Farmers’ Multi-Purpose Cooperative, pointed out that the government’s planned importation of 150,000 metric tons of sugar would cause tariff revenue losses amounting to 2.103 billion.

In the cooperative’s letter of appeal to the President, Montinola suggested that the government remove or suspend the 12-percent value-added tax to stabilize and bring down the price of refined sugar.

He pointed out that it is currently the peak of the milling season and supply of domestic sugar was more than sufficient to meet domestic needs as shown by Sugar Regulatory Administration data.

Montinola said the cooperative was issuing its appeal on behalf of thousands of sugarcane farmers who are members of the cooperative. He said 90 percent of them own less than two hectares of land and are mostly agrarian reform beneficiaries.

In its letter-appeal, the cooperative noted that there were 17 sugarcane-growing provinces in the country with an estimated direct and indirect employment of 6 million people.

It said that the extra income that the farmers would earn from sugarcane farming would help them pay amortization to the Land Bank of the Phils. for the land that they received through the Comprehensive Agrarian Reform Program (CARP).

Through sugarcane farming, they could also pay other loans, their children’s medical needs and tuition and to pay for the repair of their houses that were destroyed by typhoons and other calamities.

The six million people dependent on the sugar industry would be adversely affected if sugar prices collapsed because of massive importation, it added.

Instead of using the P2.103 billion “tax expenditure subsidy (TES)” to import sugar, the government should instead use the subsidy to bring in badly needed fertilizer for farmers to enhance the country’s food security, Montinola said.

“Importing foreign sugar would in effect be subsidizing foreign farmers instead of helping our own farmers so that we can enhance our food security program,” Montinola said.

Montinola also claimed that Favila appeared to be the “SRA commissioner” for industrial users.

“If we must import sugar, tariff free, for the households, by all means let us do so, but not for the industrial corporations,” he added.

Industrial users, including soft-drink companies and processed-fruit companies, could pay for their sugar needs with their “billions upon billions of gross revenues,” he said.

source: inquirer.net