Secretary Benjamin Diokno. CONTRIBUTED PHOTO

Local confectionery group Philippine Confectionery Biscuit and Snack Association (PCBSA) on Wednesday supports the proposal of Budget Secretary Benjamin Diokno to ease the restrictions on sugar imports, saying the plans were “long overdue.”

As presently constituted, one cannot help but conclude that the SRA Board mainly protects the interests of producers, millers and traders

“(The) government’s liberalization plan is long overdue as sugar is now practically a basic commodity that is used as an ingredient in almost all major food products that are consumed by all sectors of society,” PCBSA president Kissinger Sy said.

He explained the local price of sugar per bag can sell for twice as much that sold at the global market.

At present, the prevailing price of sugar per 50-kilo bag in the Philippines stands at P2,200 per bag. This is roughly one and a half times pricier compared to the P1,500 estimated landed cost per 50-kilo bag of imported sugar, which already includes the 5 percent tariff based on the present foreign exchange rate.

“For the last couple of years, PCBSA has been petitioning the government to allow its members to directly import sugar to be used exclusively to produce confectionery items.

Hopefully such clamor has now been heeded with the announcement made by Sec. Diokno,” Sy said, adding their sector could grow by 10 or 15 percent if allowed to import sugar directly.

“The government should now allow entities willing to engage in the business of importing and selling sugar into the country so that a level playing field is established where there is competition also amongs imports,” he added, pointing out the cartel by 12 entities accredited by the government as international sugar traders.

To address this, Sy also proposed for consumer and food producers to be represented in the Sugar Regulatory Administration’s (SRA) governing board.

“This can be effected through the amendment of SRA’s charter. As presently constituted, one cannot help but conclude that the SRA Board mainly protects the interests of producers, millers and traders, which represent the supply side of the sugar industry,” he said.

“The demand side of industry, the institutional users and the consumers in general, should have a voice as they are also stakeholders in the industry.”

The confectionery industry generates an estimated annual sales of P30 billion, Sy said making it a substantial contributor to the economy.

But the group pointed the current price distortion is “seriously affecting the viability of its members,” since sugar accounts for roughly 60 percent of a confectionery item.

The PCSBA said liberalizing sugar importation would increase the sales of local confectionery items, which could generate more funds for capital expenditures and lead to the expansion and modernization of manufacturing facilities.

The group has 19 members composed of local producers of candies, snacks and other confectionery products. Sy’s corporation, in particular, is behind products such as Mik Mik and the Sugo peanuts.