MANILA, Philippines - The Board of Investments (BOI) has approved tax incentives for a P21.5 million sugar processing plant to be put up by Forever Nutriliving Corporation (FNC) in Sagay, Negros Occidental.
The sugar plant, which will produce antioxidants and soft sugar, will be located inside Sagay Central, Inc., a sugar mill in Sagay, Negros Occidental. It will source raw materials from the sugar mill and export 70 percent of its output.
Antioxidants, which are extracted from cane syrup, are used as food additives to delay food deterioration, as medication for various forms of brain injury, and as stabilizers in fuel, lubricants, and gasoline to prevent oxidation and occurrence of foul-smelling residues.
Soft sugar, which is used for cooking, is partially refined sugar product with a distinctive brown color.
The company will produce 32,400 kilos of antioxidants and 7,020 tons of soft sugar every year.
“This is one of the tracks we are taking to further develop Philippine industries and achieve our export goals. Investments in agricultural products with added value, such as the outputs of the proposed sugar processing plant in Sagay, will enhance the competitiveness and marketability of our products,” said Trade Undersecretary and BOI Managing Head Adrian S. Cristobal Jr.
“This project will also help address the sugar needs of local industries and provide more jobs for our sugar farmers in Negros,” he added.
Industry data showed that Philippine sugar exports grew impressively in 2011 to $354 million compared to $37 million sugar exports in 2010.
Cristobal noted that under the ASEAN Free Trade Agreement (AFTA), tariffs on imported sugar would be brought down to 5% by 2015.
“This project, as well as other investments related to sugar production and manufacturing will also help the industry manage the effects of the tariff reduction on exporters and sugar farmers,” he said.