Food exporters seek access to cheap sugar

The ability of the Philippine processed food industry to compete both in the local and international market is hinged on its access to competitively priced sugar, according to Jesus T. Tanchanco Sr., president of the Philippine Food Processors and Exporters Organization (Philfoodex).

Penalizing the food industry with exorbitantly-priced domestic sugar "is tantamount to the strangulation of the industry and the farmers who supply the raw material inputs for fruit juices, purees, jams, dried fruits, preserves, sauces, candies, biscuits and other sugar-containing products," he said.

Tanchanco, who was former food minister, said ASEAN (Association of Southeast Asian Nations) food processors buy their sugar needs at only P10 to P13 per kilo, in stark contrast to Philippine cost of P24 to P26 a kilo.

"Unless the government comes to their rescue, it may lead to the collapse of the food manu-facturers especially the small and medium ones," he said.

He said the high cost of sugar in the domestic market has been hurting the food processing and export industry, "as we try to survive the tough competition in the globalized market."

Even the local retail outlets, he said, are filled with imported processed foods which are coming in at very low tariffs. As a result, "many of our food processors particularly those in the confectionery and juice sectors, are being edged out of the market by these cheap imports," he said, adding "we are losing the market by default."