Skyrocketing sugar prices stoke industry liberalization stakes | Jasper Y. Arcalas, Cai U. Ordinario, Jovee Marie de la Cruz and Jovy Rodriguez / Lyceum of the Philippines University

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CORON, Palawan and Manila—Many call it “dirty.” And they still eat it. Just ask these fifty-something entrepreneurs: Zosimo and Nelson who know the dirty ice cream business like the back of their palms. But an essential ingredient—refined sugar—has brought bittersweet success to their business. Zosimo and Nelson shared that the price of…

Just ask these fifty-something entrepreneurs: Zosimo and Nelson who know the dirty ice cream business like the back of their palms. But an essential ingredient—refined sugar—has brought bittersweet success to their business.

That is where it hits the most: Zosimo said a kilo of sugar that before cost P60—a dollar and a dime—now hits their pockets with P95, or nearly $2.THERE’S Medelyn Collorado, a street seller of “banana-Q,” short for two to three pieces of Musa saba bananas queued on a stick. Collorado said she had to cut the amount of sugar she uses: before the bananas were caramelized; these days they’re just glazed.

The aftermath of Odette was evident: prices of raw and refined sugar started to increase nationwide, especially in Metro Manila. Odette’s impact prompted officials to slash the total sugar production estimate for crop year 2021-2022 to 2.072 million metric tons from 2.099 MMT pre-milling crop estimate.

In February, the SRA issued Sugar Order 3 that authorized the importation of 200,000-MT refined sugar for industrial users, with half of the volume being bottlers’ grade . No one expected that the worse was about to happen after the issuance of SO 3.HOWEVER, sugar producers sought to stop SO 3 through the powers of the court, which issued two temporary restraining orders and a writ of preliminary of injunction.

However, the new sugar import program did not fly as the SRA resumed the implementation of SO 3 in May after it received a legal opinion from the Office of the Government Corporate Counsel that SO 3 could still be implemented in other regions except Region VI, where the writ of injunction was issued.

The reason is simple, Tolentino says: the sugar industry has been “administratively” controlled to “protect” local growers even to the “detriment” of anybody who consumes sugar, both ordinary Filipino consumers and food manufacturers. “If we are consistent with the idea of having people with competitively priced food and we are committed to the growth of the manufacturing sector, then we should liberalize the sugar industry,” he added.SUCH insights from Tolentino fail to assuage people like Danilo V. Fausto, president of the Philippine Chamber of Agriculture and Food Inc. .

 

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