Ex-SRA head Serafica tells Senate there is need to import sugar
Former Sugar Regulatory Administrator Hermenegildo Serafica maintained Tuesday at a Senate Blue Ribbon Committee hearing that there is a need to import sugar.
Serafica said that August 10 decision to import 300,000 metric tons of sugar, which was reversed by President Ferdinand Marcos Jr, was based on records from mills and refineries which are sent to the SRA through text.
“These (data) are collated also on a weekly basis and from there, we can project what happens in every particular issue,” Serafica said.
“In this case, the shortage, we are just putting it on the minimal based on the three-year average monthly demand of the raw sugar at 170,000 MT,” he added.
Serafica said when it came to the amount of refined sugar to import they based it on a three-month consumption rate.
“Now with regards to refined sugar, taking into consideration the balances for SO 3, which come out almost just 100-something, that will total to 300,000 MT. That is just to walk us through for three months, at 85,000 MT per month consumption on refined sugar,” he added.
Senator Aquilino Pimentel III asked him how SRA came up with the amount of 300,000 MT.
“In effect, the basic decision to import sugar has been confirmed by the President (Ferdinand Marcos, Jr.)? Except your SO4 could be criticized for allowing too much importation. What led you to that number? The 300,000 MT?” Pimentel said.
Serafica said they would have likely issued SO Number 5 since the production in Bukidnon, which was their “balancing factor” for the supply of sugar, was lower than expected.
Asked on how the SRA computes the demand for sugar in the domestic market, Serafica said it was a combination of data from the Philippine Statistics Authority (PSA) and the Department of Agriculture (DA).
According to Serafica, 50 percent of the total sugar production goes to industrials, 32 percent goes to households, and 18 percent goes to the institutional sector or hotels, hospitals, and restaurants.
Senate President Juan Miguel Zubiri asked former Agriculture Undersecretary Leo Sebastian to explain his claim there is a shortage of sugar.
“This is the data from the SRA. There is still sugar left in the warehouse. And there is still around 130,000 MT of sugar that is still arriving. And the warehouses still have sugar. How can you explain that? So what shortage are we talking about?” Zubiri said.
Sebastian said there is a need to import sugar because millers are not able to produce enough to keep up with the demand.
“Based on the data we have, SRA and DA, we will have a deficit of 212,000 MT for raw sugar even if the milling has started in September and October. It is only in November that we will be able to produce enough raw sugar to supply our demand,” Sebastian told the hearing.
“For refined sugar, including SO Number Three, because of the demand that we have, we have a deficit of 319,000 MT up to December. Because we don’t produce enough refined sugar,” he added.
Sebastian said the reason that there was hoarding and smuggling of sugar was due to tight supply.
“If you look at the prices, prices do not go up just because of hoarding. There is hoarding because there is a tight supply. And there is also smuggling if there is a tight supply,” he said.
The SRA earlier this month issued SO Number Four signed by Sebastian, Serafica, Sugar Regulatory Board (SRB) Miller’s Representative Roland Beltran, and SRB Planter’s Representative Aurelio Gerardo Valderrama, Jr.
The Palace has said that the order was illegal and that they will conduct a probe on the sugar importation issue.
Sebastian, Serafica and Beltran have stepped down from their post, while Valderrama remained. Jaspearl Tan/DMS
