By Modesto P. Sa-onoy
As this series had been pointing out, there is a dark side in the operation of the Sugar Regulatory Administration. This is not new, in fact, it has been there for years, sicut erat that the SRA thinks that this darkness will remain because nobody appears to be complaining. As I said before Steven Chan for years had been trying to create awareness with, I presume, a hope that the producers take action and demand changes, primarily on the country’s sugar situation – production and consumption. But to repeat, his was a voice in the wilderness.
In his advertisement I cited yesterday, Steven Chan is more hopeful when he said, “By now I think many people are already aware of this and even ready with their own ideas on how to fix it. I have my own ideas.” What are these?
He proposes that SRA should report to the public (the consumers) and the planters and millers (the producers) “all supply and demand data correctly and timely.” This is basic to any government agency because these agencies make decisions for public interest and for which they are amply compensated. In fact, this suggestion need not be made but sadly SRA had proven it is remiss.
His second proposal is for SRA to “consult with all planters and millers in an open forum, not behind closed doors and with the Alliance and traders.” Of course the producers cannot be assembled in one venue but there are representatives, normally the planters and millers associations. However, what is happening is that SRA’s consultation is “behind closed doors”, there is no attempt to provide the producers with means to know what had been discussed or agreed upon in these “closed doors” meetings.
A mechanism must be developed for a wider audience. Present-day media can answer this challenge, for instance, wider dissemination of the minutes of these meetings or even zoom meetings where every producer so interested should be able to participate. The point of Steven Chan is transparency and surely there are many ways of achieving this.
The third proposal is “constant update of the supply and demand situation data so (that) consumption trends can continuously be discussed openly, early as July before Sugar Order 1” is issued. The modern means of mass communication can readily achieve this system. There is no excuse for not disseminating these data.
The fourth proposal can be developed as a matter of public policy – no sugar imports should be allowed to enter the market until July.” While opposition to this proposal will point out these restrictions bind the SRA from responding to the fluctuating situation of the market, this will not be a problem if the producers knew and believed in the data that SRA submits to the producers. Producers do not wear blinders and will respond positively if they believed SRA. For the moment this is not possible, but it is the reason that SRA quickly should develop that trust. It takes time to regain trust and that begins with credibility of one’s words.
The fifth suggestion requires foresight in planning. Steven Chan suggests that “the total volume (of imports) shall be planned and scheduled in tranches so as to be calibrated to keep the market stable.” Since the Philippines had resorted to imports of sugar, the usual justification is “to stabilize the market.”
The consumers and the producers have accepted this reality since our production had indeed lagged behind consumption. One million Filipinos are added to population every year but our sugar lands had been shrinking each year. Though imports do kill the local production, they become necessary. Here then is the Gordian Knot but the producers can be protected and even their interests enhanced if the SRA have openness and a mechanism that can be mutually agreed upon for everybody’s interest, not only a few.
I see the sixth proposal as a relevant step in this direction to achieve mutual interest. Steven Chan suggested that “to avoid any doubts, the import rights tranches should be auctioned off in public.”
As it stands, there is protest from the producer because of the “secret deals” in this matter. The veil of secrecy must be lifted.
More about SRA on Monday.
