National Federation of Sugarcane Planters Inc. (NFSP) president Enrique D. Rojas said planters who are quedan holders should be authorized to export their "B" sugar at the height of the milling season to ensure that the domestic market is not flooded with excess supply which often depresses sugar prices.
"It is a fact that at the peak of the milling season, there is an excess of about 500 to 700 metric tons of sugar which depresses the sugar market," Rojas said.
Rojas added that whatever is exported could be imported tax-free during the lean months or off season. The authority to export or import should be on a first come-first served basis, and subject to existing laws and under the supervision of the Sugar Regulatory Administration (SRA).
Rojas said the scheme is being practiced in other sugar-producing countries like Australia, Thailand, and Malaysia.
Industry sources said all that is required for the proposal to take off is a policy statement from the government with the concurrence of the Department of Agriculture and the SRA.
Rojas said "it is a matter of record that the National Food Authority (NFA), not having substantial finances resources, can only intervene up to 10 percent of the sugar market," making its intervention insignificant.
Rojas added sugar stocks in warehouses should be moved, otherwise, these will deteriorate and the owner incurs heavy losses.
"We need another measure that would satisfy the needs of the consumers and the producers. The downturn of sugar prices this week has caused so much concern among sugar producers as they may not be able to meet payments to their creditors," Rojas said.
Rojas noted that a strong lobby is required so that a firm policy could be implemented at the soonest possible time to be able to cope with this annual recurring situation.
"This permanent policy would be a productive measure for both sugar producers and consumers."
In the recent sugar summit held among concerned government agencies and sugar producers, the industry proposed the creation of sugar marketing agency which is in line with NFSP’s proposal.
Sugar producers proposed the creation of a Philippine Sugar Act (PSA) that will take over the handling of sugar importation from the NFA.