Estrada orders re-export of smuggled sugar

President Estrada has approved the re-export of all confiscated smuggled sugar as a means of preventing the collapse of domestic sugar prices.

Agriculture Secretary Edgardo Angara said the Sugar Regulatory Administration is now working on the mechanics of the re-export scheme. "We do not know yet when the sugar will be re-exported but it has to be very soon because it is dampening local sugar prices," he said.

From around P800 per 50-kilo bag in September 1999, raw sugar prices dropped to as low as P600 per bag in November-December due to the unabated smuggling of cheap imported sugar.

The President has already ordered an inventory of all seized smuggled sugar currently in government's custody to determine the extent of smuggling activities in the country.

Angara revealed that it will probably be the National Food Authority that will re-export the smuggled sugar for the government.

He also disclosed that they are now looking at a scheme whereby NFA will also re-export excess sugar bought from the domestic market. The scheme has yet to be approved by the President.

The NFA has been authorized by the President to buy sugar from the domestic market at a support price of P700 to P750 per bag. Many of the sugar bought are still in NFA warehouses.

Sugar production for cropyear 1999-2000 ending Aug. 31 is expected to reach around 1.8 to 1.85 million metric tons. Due to the high level of inventories of the NFA as well as the extent of sugar smuggling in the country, authorities predict that there will be no need to import sugar this year.