'Importing 150,000 metric tons of sugar not enough to bring down prices'

MANILA, Philippines — A sugar milling owner told a Senate panel probe on Tuesday that the proposed 150,000 metric tons of imported sugar will not be enough to cut prices of the sweetener amid a supply shortage roiling the domestic economy. 

Pablo Lobregat, owner of Crystal Sugar Milling Company, explained to senators present in the Blue Ribbon Committee hearing why the proposed importartion volume will not be enough. Tuesday’s probe picked up what’s left from last week’s Senate panel investigation into the sugar import mess. 

Data from the Sugar Regulatory Administration (SRA) showed that the average kilo of raw sugar sold in supermarkets and groceries amounted to P74.11, reaching highs of P92 per latest data. Likewise, prices of refined sugar cost an average of P99 per kilo.

Sen. Risa Hontiveros asked Lobregat what import volume could pull the retail prices of sugar to P70 per kilo. 

READ: Sugar crunch complicates pandemic recovery for Philippine confectioners

“In a meeting in Malacañang that I attended, what was pushed is 150,000. I said anything is better than nothing,” Lobregat told Hontiveros.

The botched sugar order involved agriculture officials signing on behalf of President Ferdinand "Bongbong" Marcos Jr. for a supposed import of 300,000 metric tons of sugar. Fallout ensued, leaving in its wake resignation from agriculture officials, including the head of the SRA, which sits under the Department of Agriculture.

READ: Marcos rejects proposal to import more sugar | Sugar administrator resigns following import mess

Despite disavowing actions of these agriculture officials, the Marcos Jr administration decided to import a proposed amount of 150,000 metric tons in October. This was markedly less than what was initially proposed and might coincide with the local harvest season.

Lobregat, who also heads the Philippine Sugar Millers Association, clarified that his statements did not reflect PSMA’s view. The sugar supply shortage, as Lobregat explained, came from less-than-ideal weather events and the country’s political situation.

Lobregat said that many of them in the industry thought the weather would improve last year, but conditions proved less than favorable. He likewise reminded senators that in his statement to a Congressional hearing, “hoarding and smuggling are symptoms of supply deficit, not the cause.”

“Personally I think the whole process has been delayed. Sugar Order #3 was crafted early in January after typhoon ‘Odette.’ One of the causes of prices going up was the delay caused by temporary restraining orders issued in Negros as that order of refined sugar was supposed to arrive in March. It came in May,” he said. 

“The elections caused paralysis in most government agencies until new admin came online, this is what I said in Congress, now they’re still crafting sugar order. These all caused these prices to remain high,” he added. 

The ongoing supply shortage dominated news headlines for weeks now, that industry stakeholders are feeling the sugar pinch. Beverage giant Coca-Cola Beverages Philippines, Inc. said production is likewise suffering.

The company’s latest statement in the Senate probe indicated that the shortage compelled them to suspend operations in some of their plants temporarily. Four Coca-Cola plants located in Davao, Zamboanga, Imus in Cavite, and Naga all halted production for the meantime. 

“If the plants are not operating, the workers are not required to come to work. Everyone is being paid salary and wages there,” said Atty. Juan Lorenzo Tañada, director for corporate and regulatory affairs of Coca-Cola.