Small Farmers, Sugar Industry Hail Coca-Cola’s Case Withdrawal vs SRA

Small Farmers, Sugar Industry Hail Coca-Cola’s Case Withdrawal vs SRA

Small farmers and the local sugar industry hailed Coca-Cola Philippines’ decision to drops its case against the Sugar Regulatory Board (SRA).

On Tuesday (May 16, 2017), the beverage firm Coca-Cola Philippines has been called by the Sugar Alliance of the Philippines during a congressional hearing and questioned the validity of Sugar Order No. 3. The beverage company has dropped the case against SRA.

Sugar Order No. 3 allows SRA to classify HFCS in 3 categories; “Class C” – Reserve, “Class B” – Domestic, and “Class D” – World Market sugar. Class B is the only type of HFCS that can be used by the local beverage and food manufacturing companies nationwide.

P30 per metric ton was ordered to be imposed on imported HFCS. The order was a response from the Sugar Board to the complaints of the local sugar producers concerned on the future of the sugar industry in the country.

Local sugar producers complain about the higher consumption of HFCS by the beverage company, which will cause a drop in the prices of domestic sugar from P1, 200 – P1, 300 per bag down to P400 per 50-kilo bag.

HFCS – High Fructose Corn Syrup was derived from corn starch, which is mostly importer from China with zero tariffs. The Bureau of Customs (BOC) also shows their statistics that 919, 176 metric tons of HFCS have been imported in the country over the last 5 years.

Coca-Cola uses 90 percent HFCS and 10 percent sugar on the beverage products. The beverage company faces smuggling charges from alleged smuggling P70.1 million worth of HFCS without SRA’s clearance given by Sugar Order No. 3, which was filed by Sugar Anti-Smuggling Organization deputy chief Edgardo Lumanog Jr.

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