Zubiri shows ‘sea of sugar’ but former agri exec insists on shortage
This photo is taken from the presentation of Senate President Juan Miguel Zubiri during a Senate blue ribbon panel hearing about sugar importation on Tuesday, August 23, 2022.| PHOTO: Office of Senate President Migs Zubiri
MANILA, Philippines — Expect hoarding and smuggling when there is a tight supply.
Resigned Agriculture Undersecretary Leocadio Sebastian offered this explanation on Tuesday when Senate President Juan Miguel Zubiri showed during a Senate hearing what he dubbed as “a sea of sugar” recently apprehended by authorities in various warehouses in the country.
During the Senate blue ribbon committee hearing, Zubiri noted that 125, 000 metric tons (MT) of the 200,000 MT of imported sugar allowed under Sugar Order No. 3 have not been released yet to the market as of August 12.
“So what shortage are we talking about?” the Senate leader asked.
READ: PH importing 200,000 tons of sugar to stabilize prices
During the hearing, Zubiri then proceeded to show photos and videos of warehouses and container vans full of sugar.
“Parang mga dagat ng asukal—it’s a sea of sugar that [has] been apprehended in the last few days in bodegas all over the country,” he said.
“Parang dagat ng asukal, sea of sugar. These are container vans. They have sugar hidden in them. Ayan Usec, that’s not made up. I’m not making this up.”
READ: Warehouse raids yield ‘suspected hoarded sugar’
“Is this the shortage? Is this the shortage that you’re saying, your honors at the DA…Ayan, ano yan? Are we pretending that’s not in existence? Is that being hoarded for price manipulation?” the Senate president further asked.
Sebastian explained that the country’s monthly consumption of raw sugar is 170,000 MT and 85,000 MT of refined sugar.
Citing the Sugar Regulatory Administration (SRA) data and the Department of Agriculture, Sebastian said the country would have a deficit of 212,000 MT for raw sugar even if milling starts in September and October.
“It’s only in November that we will be able to produce enough raw sugar to meet our demand,” he said.
For refined sugar, he said there would be a deficit of 319,000 MT until December this year, noting that the country does not produce enough refined sugar.
“So, your honor, if you’ll see those data, it’s very compelling, and you look at the prices, your honor, prices do not just go up because of hoarding,” Sebastian pointed out.
“There is hoarding when there is a tight supply, your honor. And there’s smuggling also, your honor, if there’s a tight supply,” he likewise said.
Still, Zubiri stood by his earlier remark that the country had enough supply of sugar.
“I believe you were misinformed on the amount because I was told the stakeholders were not informed,” the senator said.
“That is the problem, your honor, when you say we have notified the stakeholders, sino-sino ‘yun? Dadalawang tao, tatalong tao? Eh may sugar alliance, hindi po kayo nagtawag ng sugar alliance meeting.”
Zubiri further said that when Sebastian issued Sugar Order No. 4, supposedly authorizing the importation of 300,000 MT of sugar, he did so without consulting the SRA deputy administrators.
READ: SRA chief Serafica resigns following sugar importation mess
But President Ferdinand “Bongbong” Marcos Jr., who concurrently sits as DA chief, disowned the directive that later resulted in the resignations of Sebastian and top SRA officials.
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