DESCENDED TO THE WORSE: THE PROBLEMATIC SUGAR FIASCO

The complex interaction of politics and economics is a significant agenda on a national and global scale. It involves critical aspects crucial in catering to the needs of citizens and local businesses. Moreover, each national economy is a component in a network of connections that operates in the field of international political economy.

President Marcos has previously conveyed his protectionist agenda to safeguard and prioritize the market of domestic agricultural goods and the livelihood of the local farmers. However, circumstances have maneuvered his decisions to retrograde this intent. With the current sugar shortage crisis and the soaring demands, the Philippines have been compelled to import from foreign producers. Earlier this year, the sugar shortage has been the country’s focal economic concern. The sugar problem appears to be the outcome of weather-related output shortfalls in the agriculture sector. This topic has been extensively talked about, creating agitation as the rippling effects of it have heightened the anxiety of the local industries and customers alike. Consequently, the Philippine economy’s macroeconomic goals were threatened. The preeminent effects of the sugar shortage were felt as the prices of sugar and products in the use of it had soared, more so, doubled.

As multinational companies feel the magnitude of the impact of the crisis, one can only imagine how gravely affected the consumers and small business industries are. To put it into perspective, there are around 18.1% of Filipinos that live within and under the poverty line. The sugar crisis and the rising prices of other commodities due to surging inflation have undisputedly put a strain on pecially those minimum wage income earners. Multinational companies, particularly in the food and beverage industry, such as CocaCola had closed down some of their production plants. Consequently, a number of employees were laid off hence, magnifying the issues of unemployment.

In order to rectify the dilemma, the Sugar Regulatory Administration (SRA) opted to pursue the idea of importation to ease the staggering demands and intend to stabilize the prices. Unfortunately, events did not go as envisioned. Instead, the Philippine government faced a sugar smuggling fiasco.

The Senate Blue Ribbon Committee had expostulated the former SRA board for grave administrative charges. It is due to the reported anomalous importation of 300,000 metric tons of sugar claimed to have not been authorized by President Marcos Jr. However, these allegations were later turned down when it was justified that the 300,000 metric tons of sugar importation were permitted through the issuance of Sugar Order 4. Nonetheless, the import license eventually got revoked after President Ferdinand Marcos Jr., the acting agricultural secretary, stated that he did not approve of it. It may be realized that the case of this en by the urgency of the situation. However, no matter the intent, trade transactions are required to follow the systematic bureaucracy that is imposed in the Philippine governmental processes. So much can be discussed on how the Philippine sugar crisis exposed the inadequacies in the import dispute and how the sour turn of events turned bitterly worse.

Agriculture is an extremely vulnerable industry. Further investigation into the Philippine sugar issue reveals that agricultural output shortfalls may be caused by weather-related interruptions and political dynamics. Trading authorities also looked at hoarding allegations. According to reports, a few trade warehouses were investigated pursuant to suspicions of stockpiling, which might have been driven by a desire to spike sugar costs. This form of economic sabotage would deprive the consuming public of the sugar supply, resulting in sugar scarcity and heightened prices. In the end, it is the consumers, local farmers, and sugar-utilizing enterprises that have been placed at a disadvantaged end. The economics of it all does not solely rest in the hands of the trading authorities and national industries but, more importantly, with the effective coordination with the government.