GMA orders tariff-free sugar imports

MANILA, Philippines - President Arroyo has ordered zero tariff importation of sugar until the end of the year and authorized the National Food Authority (NFA) to procure and sell the commodity at subsidized prices.

Through Executive Order 857, Mrs. Arroyo authorized the NFA as well as the private sector to import sugar at zero tariff through the Tax Expenditure Subsidy Scheme of the NFA.

Mrs. Arroyo signed the EO on Jan.29.

Sugar prices in many retail stores have breached the standard retail price or SRP of P52 set by the Department of Trade and Industry.

“The National Food Authority, considering their capability and experience in the marketing of grains and non-grain commodities, is the most appropriate government agency to intervene in the stabilization of basic food items,” EO 857 said.

In lieu of tariff, private importers would only be charged service fees to be collected by the NFA.

The secretaries of Agriculture and Trade and Industry will determine the volume of importation, according to the EO.

Agriculture Secretary Arthur Yap earlier announced the arrival of 150,000 metric tons of sugar between May and August.

The NFA has already started selling one-kilogram packs of refined sugar at accredited grains dealers and other state-operated markets that cater to low income and poor consumers.

“The government is committed to pursue a policy of food security, especially for the benefit of the less fortunate, disadvantaged and marginalized sectors of the country,” the EO read.

“In times of national emergency or calamity, the welfare of the people becomes the supreme law,” it added.

Malacañang said the president, under an older directive – EO 1028 of 1985 – “may, for stabilization purposes, authorize the intervention by the appropriate government entities in the trading of other food items if so warranted by conditions as may exist from time to time.”

Earlier, DTI Undersecretary Zenaida Maglaya said supermarkets were considering pulling out sugar products due to their prohibitive costs.