BACOLOD CITY, Philippines—Senate Majority Leader Juan Miguel Zubiri on Thursday said a Senate investigation would be conducted on the continued smuggling of sugar into country so that legislation could be passed to impose penalties on those who fail to enforce the law against smuggling.

The Sugar Regulatory Administration (SRA) Sugar Monitoring and Anti-Smuggling Task Force earlier intercepted last week 1,547 bags of Mitr Phol Refined Sugar from Thailand valued at P2.1 million.

The cargo was delivered in three 20-foot container vans to Will Chan Trading at No. 27 Mayon Street, Quezon City, SRA Administrator Rafael Coscolluela had said.

Coscolluela also said that the power to make arrests and file charges against sugar smugglers lies with the Bureau of Customs.

Zubiri told the Inquirer he would file a resolution seeking an investigation of sugar smuggling by the appropriate Senate committee.

As majority floor leader, Zubiri said he could have the matter calendared perhaps by next week.

“Industry leaders, the SRA and the BoC will be asked to attend the inquiry so we can get to the bottom of this. We want to find out why the smugglers are not afraid to continue to bring in smuggled sugar and determine what penalties should be set into law on those who fail to enforce the law,” he said.

Zubiri also cited a need to strengthen and increase the penalties on sugar smugglers.

Earlier, Sen. Mar Roxas also said he would file a bill in the Senate to strengthen the powers of the SRA to go after sugar smugglers.

Roxas said he would be open to suggestions from the SRA on what type of legislation it will need to strengthen its powers.

Cheap smuggled sugar entering the country has caused domestic mill gate sugar prices to drop below production cost due to an oversupply even as sugar milling had just begun, industry leaders have complained.

Sugar prices have been selling below P1,000 per 50-kilogram bag (Lkg) this crop year but this week the prices have inched slightly above P1,000.

However, for farmers to break even, sugar should at least sell at P1,200 per Lkg, according to Manuel Lamata, president of the United Sugar Producers Federation of the Philippines.