MANILA, Philippines - Industrial users of sugar like softdrinks makers will corner half of the 150,000 metric tons (MT) of sugar that will be imported in the second quarter under a scheme meant to stem rising retail prices, officials yesterday said.

This developed as Malacañang released an executive order (EO) allowing private entities to import the bulk of the volume duty-free under the name of state-led National Food Authority (NFA), with a public bidding determining who gets the import rights.

EO 857 was needed as sugar is not covered by the NFA’s mandate and only the grains agency is entitled to tax subsidies.

General guidelines drafted by the Agriculture department, NFA, and Sugar Regulatory Administration (SRA) officials, shown to BusinessWorld yesterday, indicated that 75,000 MT of sugar have been allocated to industrial users, while 15,000 MT would be set aside for food processors.
The NFA and the institutional users (such as bakeries and restaurants) will each get 30,000 MT of sugar.

The 150,000 MT will enter the country in two tranches. An initial 60,000 MT is expected to arrive by April 30, while the remaining 90,000 MT should arrive by June 30.

But SRA chief Rafael L. Coscolluela said a proposal was submitted to Malacañang by a group of farmers to move the delivery dates to May and August or at the end the milling season to give them time to prepare. This has yet to be approved.

The guidelines state that industrial users can get 50% from each of the two tranches, while food processors will have 10%. The NFA and institutional users will each have 20%.

Mr. Coscolluela said this means that for the first 60,000 MT, industrial users including Coca-Cola Bottlers Philippines, Inc. will have 30,000 MT, and then get another 45,000 MT in the second tranche.

"But there [was] a proposal from [Agriculture Secretary Arthur T. Yap yesterday] to reduce industrial users’ initial allocation of 30,000 MT by 10,000 MT and give the 10,000 MT to the NFA to make the imported sugar available to the market immediately," said Mr. Coscolluela, adding that the SRA and the NFA were amenable to the idea.

Individual industrial users, meanwhile, can get only up to 5,000 MT while the rest will each get only up to 1,000 MT of sugar. This means that if Coca-Cola gets 3,000 MT of sugar from the first tranche, it will only be allowed to get 2,000 MT more in the second tranche.

Romeo B. Jimenez, director of the marketing operations department of NFA, said the agency was still undecided on whether it would take part in the importation.

If the NFA decides not to participate directly, Mr. Coscolluela said its share would be given to "others."

"Hopefully the final guidelines will be approved by Secretary Yap and the target in fact is to have everything finalized this Friday," Mr. Coscolluela said.

The government could publish the invitation for bidding next week.