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Sugar crisis may trigger price hikes of processed food, beverages

Market stall with dry goods. STORY: Sugar crisis may trigger price hikes of processed food, beverages

The prices of processed food products, including beverages, may increase if the sugar supply runs short, according to the Philippine Chamber of Commerce and Industry. This photo was taken in September 2018. (File photo by GRIG C. MONTEGRANDE / Philippine Daily Inquirer)

MANILA, Philippines 鈥 The Philippine Chamber of Commerce and Industry (PCCI) on Monday warned of a possible increase in the prices of beverage and processed food products, saying the shortage in sugar supply in the country may force their members to adjust costs.

PCCI president George Barcelon told the Inquirer in a phone interview that there was an 鈥渦rgent need鈥 for the government to address the issue as many of their members were already affected by the shortage.

鈥淪omebody told me that if there is no solution at the end, there may be certain factories that may have to slow down,鈥 he said, adding that it may be already too late if the government鈥檚 only plan was to import additional sugar by October. According to him, they see importation as a short-term solution.

Correct importation plan

The Philippine Center for Entrepreneurship also said the government鈥檚 timing and decision to import a limited amount of sugar supply was correct, saying the measure would protect both consumers and sugar farmers.

鈥淭he importation plan that the president has directed is correct and can help us achieve a more inclusive economy. It will allow our small farmers to make a living,鈥 Joey Concepcion, the founder of the nonprofit group鈥檚 advocacy campaign Go Negosyo, said in a statement.

Exhaust local supply first

Over the weekend, President Ferdinand Marcos Jr. said he might consider importing as much as 150,000 metric tons of sugar in October if the current stock from local production and previous importations were insufficient.

鈥淏efore we again import sugar, I said, we should first exhaust the supply that鈥檚 here,鈥 the president said in a vlog posted on Sunday.

鈥淢aybe by October, probably when the supply that鈥檚 here in the Philippines is about to be exhausted, maybe we need to import鈥攂ut only a little, not as much as the 300,000 metric tons that they鈥檙e saying before. Maybe 150,000 tons is big enough for the rest of the year,鈥 he added.

He said there was enough supply of sugar locally and this, along with the 150,000 MT imported last May, could be used to stabilize prices.

Meanwhile, the controversy over a sugar import order has led to the resignation of another official, lawyer Roland Beltran, who said he stepped down as a member of the Sugar Regulatory Administration鈥檚 (SRA) sugar regulatory board due to health reasons.

鈥淭his is without prejudice to any investigation that may be conducted in connection with the issuance of Sugar Order No. 4 s. 2022-2023,鈥 he said in his Aug. 14 letter to Malaca帽ang.

Another official quits

Beltran was one of the signatories of the order which would have authorized the importation of 300,000 MT of sugar. The Palace, however, described it as 鈥渋llegal鈥 since Marcos, also sitting as the country鈥檚 agriculture secretary and SRA board chair, did not authorize holding a meeting or issuing such a resolution.

Agriculture Undersecretary Leocadio Sebastian, who signed on behalf of the president, later apologized and stepped down from his post.

Lawmakers have also pushed for the resignation of other SRA officials who signed the order.

House Deputy Minority Leader and ACT Teachers Rep. France Castro and Negros Occidental Rep. Juliet Marie Ferrer made the call as the committees on food and agriculture, and good government held a briefing on Sugar Order No. 4.

鈥淭his is just a briefing but apparently from the resource persons, there was a problem with the issuance of Sugar Order 4, and there were signatories who already resigned.

My question is, why are the others not yet resigning as a matter of delicadeza,鈥 Castro said.

鈥擶ITH REPORTS FROM JORDEENE B. LAGARE AND JULIE M. AURELIO

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