Stop sugar exports under US quota, IBON urges gov't

The government should stop exporting sugar to the US to ensure domestic supply and ensure food security, a militant think tank said IBON Foundation made the call amid fears of sugar shortage caused by supermarkets pulling out sugar products due to rising prices of the commodity. "If the government is warning that there will be a shortfall in supply, continuing the fulfillment of the country’s sugar quota commitments to the US contradicts the national interest," it said in a statement. Malacañang has issued an executive order scrapping tariffs on sugar imports until the end of this year to stabilize rising prices. But IBON noted that while the country is scrambling to import sugar, the Philippines is also set to export 158,906 metric tons of sugar to the US under an export quota system. IBON also cited the Trade department’s projection that a major El Niño episode threatens domestic sugar production. Philippine sugar exports go to the US under its tariff rate quota (TRQ) system. This system sets the specified volume of raw cane sugar that the US will allow to enter its market at a relatively low tariff as part of its commitment under the World Trade Organization (WTO) agreement. IBON said the government's plan to import sugar would only mitigate the impact on local supply, while traders scamper to export and take advantage of high global prices. The group added importing sugar would not benefit consumers because of an existing sugar cartel. IBON also criticized what it claims is a collusion among government, exporters and importers to hype the shortage so that the high prices could be sustained even after the reported troubles in the world market. The group said the best protection against price and supply speculation is to guarantee the availability of sugar in the market. Suspending sugar exports is justified by the country’s food security interest, it added. "During the height of the global rice crisis in 2008, major rice exporters such as Thailand and India suspended exports. The Sugar Regulatory Administration (SRA) simply needs to fulfill its mandate of regulating sugar exports to ensure domestic supply," it said. — GMANews.TV