The Market Monitor Minding the Nation's Business
The competition posed by artificial sweeteners and the low buying prices for cane by millers and processors, have caused concern for the local sugar industry, prompting the Sugar Regulatory Administration (SRA) to look at increasing import clearance fees and other protective measures for the cane farmers and growers.
“Our (intent) is to gather accurate data on how much (alternatives) are entering and then what is entering. The charges for import clearances are very minimal,” SRA Administrator Pablo Luis S. Azcona told reporters late November.
He said the planned fee hike for high fructose corn syrup is P30 per equivalent bag of sugar and P10 per equivalent bag for all other sweeteners.
Tariff Code 17.02 of the ASEAN Harmonized Tariff Nomenclature sets tariffs only for high fructose corn syrup, Business World reported.
Azcona added that a Sugar Order (SO) has been drafted and is up for review by the SRA board, with the possibility of approving the SO by next month or an effectivity date of January.
He added that industrial users of alternate sweeteners have also been consulted on the increase in import clearance fees.
“We explained to them that we are first data gathering, and then in the future we will (discuss other policies),” he said.
Agriculture Secretary Francisco P. Tiu Laurel, Jr. has ordered an investigation into the entry of other sweeteners after meeting with the sugar industry. Producers have said such imports compete with cane sugar.
SRA was tasked to look into the actual volumes of other sweeteners and, if warranted, require them to acquire clearances as well.
Azcona added that the SRA is also seeking to address imports of artificial sweeteners, to monitor volumes coming in. “Based on our information, it is quite large, between 200,000 to 300,000 tons,” he added.
He said SRA will also study the health issues related to artificial sweeteners in potential collaboration with the Department of Health. Rose de la Cruz