SUGAR REGULATORY ADMINISTRATION

Pointing out that the Bio-fuel Act can save the sugar industry by 2010, he stressed, “it is important to determine the extent of sugarcane production that will be allotted for ethanol without sacrificing the needed supply for domestic sugar consumption.”

In relation to the ASEAN Free Trade Area (AFTA) commitment, he said that we can ask the Tariff Commission to reclassify sugar to be under the highly sensitive list, as this would mean immunity to tariff reduction, and tariff will then be pegged at 38%.

Meanwhile, as of May 11, 2008, sugar production report of Atty. Johana Jadoc, OIC, Regulation Department has reached to 2,245,002 MMT or a 1.55% ahead of last year’s record pace of 2,210,710 MT. With the projected target of 2.25 MMT, sugar production has almost reached its target estimate even if the milling season is not over yet.

She also mentioned the anti-smuggling drive of SRA wherein more than 400,000 Lkg/bags of sugar were apprehended with an estimated cost of P63 million pesos which could have caused detrimental impact to our domestic sugar prices.

One issue raised was converting the confiscated smuggled sugar into ethanol. Coscolluela said that it is not possible since researches have shown that converting sugar into ethanol is not economically feasible. 

He also discouraged the farmers to mill early even if their canes are not yet matured just to avail the high price of sugar. This scenario would only create an adverse effect on the overall sugar production of the country.

Coscolluela also recommended cooperatives to deal directly with suppliers of fertilizers, through Philsucor, to avail of discounts on bulk purchases. He also encouraged the use of alternative fertilizers such as mud press, rock phosphate and lime, to help solve the problem on acidity and inadequate organic matter in the soil.