Sugar importers want import allotments cut

Sugar importers earlier awarded with import allocations want the government to cut their allotments given a marked decline in the prices of local sugar, the Sugar Regulatory Administration said at the weekend. “There are three importers asking the agency to reduce their contracted volume since it will now be unprofitable for them to bring in sugar at the contracted price that they are allowed to import," said Jose Rojo Alisla, SRA chief regulation officer. The price of raw sugar stood at P1,630 per 50-kilogram bag last week compared with P1,900 two months ago. Emmanuel Commercial and Food Entrepreneurs and Exporters of the Phils., which were allowed earlier to import 2,000 metric tons (MT) each, want to cut their allocations by 500 MT. VAT-Free Sugar Co. also wants to reduce its 100-MT quota. Most of the contractors have also asked the government to delay the arrival of shipments due on May 31. They are also keen on revising the liquidation procedures required by the government. Winning bidders during the February 23, 2010 auction for 60,000 MT of sugar must report the destination of the imported sugar to avoid hoarding and price speculation. Seven companies — Coca-Cola Bottlers Phils., Inc, TFN Far East Inc., Food Enterpreneurs and Exporters of the Philippines, Vat-Free Sugar Co., Bee Crescent Blending Corp., Emmanuel Commercial Corp. and Nismo Trading, Inc. — earlier won the contract to import 16,000 MT of sugar. “We are encouraging the companies to put to writing all their concerns to make it official so that the government can act on their requests," Alisla said. He said the second import tranche of 90,000 metric tons will proceed, while plans to rebid the balance of 44,000 MT from the first tender had been put on hold. “We’re just following the guidelines. Unless there is a memo or advisory from the National Government or the Department of Agriculture to scrap the remaining importation, we are bound to facilitate the importation," Alisla said. Former SRA Administrator Rafael Coscolluela said they might cancel the remaining imports given waning interest. Alisla added that accredited sugar importers are disgruntled with the higher performance bond — now at P184.35 per 50-kilogram bag from P150. — GMANews.TV