Sugar planters proposed to Congress yesterday several measures aimed at protecting the local sugar industry from the devastating effects of smuggling and unnecessary sugar imports.
The National Federation of Sugarcane Planters (NFSP) asked Congress to empower the Sugar Regulatory Administration (SRA) to put on reserve and classify as 'C' sugar (reserve sugar) all imports considered in excess of domestic requirements.
NFSP executive vice president Enrique Rojas noted that under the present liberalized trading regime, the country could at anytime be flooded with cheap imported sugar from the world market. "Since prices are governed by the law of supply and demand, imported sugar in excess of our domestic requirements will naturally depress sugar prices, to the prejudice of our local producers," he explained.
He said the SRA should be empowered by law to classify these excess sugar as 'C' sugar in order to hold them in reserve until such time that they could be released to the domestic market without adversely affecting the stability of the market.
To strengthen government's campaign against sugar smuggling, the NFSP also recommended that importers be required to secure a permit or license from the SRA prior to importation.
Rojas noted that existing rules allow importers of undocumented sugar to secure the necessary papers within 72 hours in order to legitimize an otherwise unauthorized importation.
Also included in NFSP's legislative proposal is one that seeks to require all sugar mills to post a bond to guarantee the integrity of the sugar quedans and molasses certificates that they issue from time to time. This is in response to incidents in the past when some of the mills issued quedans or warehouse certificates as well as refined sugar delivery orders (RSDOs) that did not have physical stocks to back them up.
The group also recommended that heavy penalties be imposed in the form of both fine and imprisonment for all violators of any of these requirements.