‘Sugar liberalization to undermine Philippine agriculture competitiveness’

MANILA, Philippines — The government’s move to open up the local sugar industry to importation would just compromise the country’s bid to achieve agricultural competitiveness in the region, the Capiz government has warned.

In a resolution filed by the Office of the Sangguniang Panlalawigan of Capiz, the provincial government has expressed strong opposition to the proposed liberalization or deregulation of sugar importation.

“The proposed import liberalization of sugar would undermine the agricultural competitiveness and independence of the country,” the resolution read.

“With the demise of the sugar industry, the country will no longer be self reliant but instead would be dependent on imported sugar, a great irony considering that it was the Ilongos who started the country’s sugar industry and was the inspiration of our Asean neighbours in developing their own,” it said.

Last month, the Department of Finance issued an economic bulletin stating that the high effective protective rate of the sugar industry penalized customers and deterred the growth of downstream industries.

The DOF called for replacement or removal of quantitative restrictions and paving the way for the liberalization of sugar importation.

“The liberalization of sugar importation would most likely result to dramatic losses to the country’s sugar industry leading to the untimely demise, thus eroding the country’s capability of being self-sufficient and self-reliant in sugar production,” it said.

The provincial government said the comparison of the Philippines with Thailand is unfair as the two countries are not on the same playing field due to lack of effective government support and subsidy to the sugar industry in the Philippines.