NFA warehouses tapped for distribution of smuggled sugar

MANILA, Philippines — The Department of Agriculture  (DA) will tap the warehouses of the National Food Authority (NFA) in the distribution of the 4,000 metric tons or 80,000 bags of smuggled sugar in Kadiwa stores nationwide.

Rex Estoperez, DA assistant secretary and deputy spokesperson, said in an interview that a memorandum of agreement was already signed by both agencies, noting that the NFA has warehousing and logistics capabilities as well as branches nationwide.

The DA and Bureau of Customs have signed a separate MOA for the formal turnover of 4,000 MT of smuggled sugar to the agency.

Estoperez said the smuggled sugar would be withdrawn from the ship and brought to warehouses.

“These (smuggled sugar) have to be subjected also to (random) testing of the Sugar Regulatory Administration (SRA) before it could be made public,” he added.

According to Estoperez, the NFA will also be in charge of repacking these to one-kilo and two-kilo bags. “The NFA can do that (repacking). We will pay the NFA what’s due them for the operational cost.”

The NFA, he said, targets to release the sugar “as soon as possible” with Visayas and Mindanao each getting 20 percent of the allocation and Luzon, especially Metro Manila where the consumption is higher, getting the rest.

He said that the DA is eyeing to sell the confiscated sweeteners at Kadiwa stores at P70 per kilo. Based on DA monitoring, the retail price of brown sugar ranged between P78 and P90 per kilo; washed sugar, P82 and P95 per kilo; and refined sugar, P86 and P110 per kilo.

“While the smuggled sugar was given to the DA at no cost to the government, we have to consider also the price of our local sugar as it will destroy the market, it will disrupt the prices of our locally produced,” Estoperez noted.

The proceeds from the sale will go to the trust fund for the expansion of Kadiwa outlets, he said.