Sugar farmers laud gov't move to hike high-fructose corn syrup fee

By Stephanie Sevillano

September 27, 2024, 6:00 am

<p><strong>HIGH FRUCTOSE CORN SYRUP.</strong> Sugar Regulatory Administration Administrator Pablo Azcona reports the increase in import fees for high fructose corn syrup, in an interview on Thursday (Sept. 26, 2024). The SRA moved to bring back the PHP30 import clearance fee per 50-kg bag of HFCS implemented last February 2017 but was suddenly dropped to PHP1.50 a month later.<em> (Screengrab)</em></p>

HIGH FRUCTOSE CORN SYRUP. Sugar Regulatory Administration Administrator Pablo Azcona reports the increase in import fees for high fructose corn syrup, in an interview on Thursday (Sept. 26, 2024). The SRA moved to bring back the PHP30 import clearance fee per 50-kg bag of HFCS implemented last February 2017 but was suddenly dropped to PHP1.50 a month later. (Screengrab)

MANILA – The Sugar Regulatory Administration (SRA) said Thursday that sugar farmers and stakeholders are delighted following the import clearance fee hike for high fructose corn syrup (HFCS).

This came after the SRA acted on the low import charge for HFCS set at PHP1.50 per 50-kilogram equivalent, following a sugar stakeholders meeting with Agriculture Secretary Francisco Tiu Laurel Jr. on Aug. 6.

"The farmers and the millers are all happy kasi po (because) if you notice, for the last five years or so iyong demand natin for sugar ay hindi umaakyat which is unexplainable kasi po dumadami iyong tao sa Pilipinas (the sugar demand is not increasing which is unexplainable because the population in the Philippines is increasing)," SRA Administrator Pablo Azcona said during the Bagong Pilipinas Ngayon briefing.

Sugar usage is not increasing due to the rising demand for HFCS as an alternative, which was deemed “less healthy” as it comes in either syrup or powder form, he said.

"Tuwang-tuwa po iyong farmers and millers kasi (the farmers and millers are very happy because the) government is helping them."

The SRA moved to bring back the PHP30 import clearance fee per 50-kg bag of HFCS implemented last February 2017 but was suddenly dropped to PHP1.50 a month later.

“We were tasked immediately by Secretary Laurel to look into it and while looking into it we noticed na iyong charges pala from PHP30 ginawang (that the charges, which used to be PHP30, were dropped to) PHP1.50. So, immediately the Sugar Board decided to put it back to PHP30 as a start,” Azcona said, citing an ongoing investigation on the matter.

“We’ve been looking through the minutes of the Sugar Board and everything but we cannot find pa po (yet) the reason. It has been seven to eight years back, so we’re going through a lot of paperwork,” he added.

Besides the fee hike on imported HFCS, the SRA is also looking into other “sugar substitutes” that are “chemically-contained.”

Farm consolidation

Azcona, meanwhile, highlighted the SRA’s efforts to consolidate farmers into cooperatives to increase the sector’s yield and profit.

“So far, we’ve consolidated about 260 block farms, ang tawag natin (what we call them). So, this amounts to about 10,600 hectares,” he said.

The 260 block farms involve around 7,700 sugar farmers, with around PHP5 million worth of assistance per block farm.

“Half of that is pera pampuhunan (money capital), startup capital; half of that is equipment, so masaya naman po (they are happy),” Azcona said.

Through this, he said farmers were able to increase their yield by around five to 10 tons per hectare or equivalent to a 10 to 20 percent production hike.

Azcona said the yield hike translated farmers' profit from around PHP58,000 annual gain to around PHP150,000 to PHP175,000.

“It’s about three-fold. So, they earn maybe almost 12 to 15,000 a month,” he said, citing a previous monthly income of around PHP4,400.

To date, Azcona said 85 percent of the 380,000-hectare sugar industry is yet to be consolidated. (PNA)

 

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