By Edgar Cadagat

The government has given the go-signal to government agencies and private traders to import sugar, both to stabilize supply and prices of the commodity, as well as to provide a buffer stock by next crop-year when production is expected to decline due to the effects of climate change from the dreaded global warming phenomenon which has already taken its toll on rice and corn crops in several areas of different provinces.

SRA Administrator Rafael Coscolluela and President Gloria Macapagal-Arroyo made the announcements a few days ago.

Earlier, sugar industry stakeholders including sugar planters through their associations, and millers declared their opposition against importation as there were more than enough supply in the province which the SRAs top honcho agreed with.

Although importations were to begin April, this could start May up to August as producers have asked the government to carry out importations by the end of the milling season which is April.

National news reports said Malacañang has issued Executive Order No. 857 which authorized the NFA to import sugar along with the private sector. The NFA was ordered to use all its manpower and resources in the directive to import sugar which under the order is also now included in the coverage of the government grains supplier.

The imported sugar are not to be taxed which would have amounted to about P2.1 Billion which means lower sugar prices as the add-on in the form of taxes usually sold by traders and retailers will have been removed.

The sugar importation is to last until December, 2010 as the Executive Order indicated.

The 150,000 metric tons importation which will be done on a staggered basis, are to be apportioned as follows: 75,000MT for food and drink manufacturers 75,00MT with each industrial user allowed 5,000 each; 300 will be allocated to institutional users to include hotels and restaurants; and 15,000MT for small businesses to include retailers and business users such as bakeries which uses a lot of sugar.

Each may import, according to a national newspaper, 1,000MT. To ensure lower priced sugar for the low-income groups, 30,000 MT be allocated to the NFA Tindahan Natin outlets all over the country.

Those who are given the authority to import sugar must find their own supplier which may not be easy given the high price of sugar on the world market and the devastation caused by calamities on sugarcane crops the past years.*