The Federation of Philippine Industries (FPI) has raised the alarm over a potential rise in the price of confectionery and beverage products, citing new requirements from the Sugar Regulatory Administration (SRA). The controversial Sugar Order (SO) 6 mandates sugar-based and sugar alternatives importers to secure additional permits and pay new shipping fees, bloating costs and causing operational disruptions in the industry.
FPI chairman Jesus Arranza expressed concerns that the new order could create bureaucratic bottlenecks, slowing down imports and causing delays at the ports. While manufacturers are willing to pay the fees, Arranza warned the extra costs, along with potential port congestion, could hurt both production timelines and overall pricing.
The order affects a wide range of sugar-related products, including glucose, honey, and specialty syrups, which are critical in the production of many confectionery and beverage items. FPI argues that a simpler data-sharing arrangement between the Bureau of Customs and the SRA could provide the necessary importation information without the added complications.
In response to industry concerns, SRA Administrator Pablo Azcona announced a suspension of SO 6, pending further consultations with industry stakeholders. This development addresses feedback from concerned groups, including the Philippine Confectionery Biscuit Snack Food Association and the Beverage Industry Association of the Philippines.
But even with the suspension, the SRA gave assurance the processing of sugar-related imports has generally been efficient, with minimal fees involved. However, the economic impact of any future price hikes could be significant, especially for consumers, as increased production costs may eventually be passed on in the form of higher retail prices.
