By Damion Mitchell, Staff ReporterOFFICIALS OF the sugar industry are warning that the continued importation of refined sugar for ordinary use, coupled with the continued devaluation of the Jamaican dollar, could result in an increase in the price of local brown sugar.
At a forum hosted yesterday by the Jamaica Association of Sugar Technologist at Bernard Lodge Estate, St. Catherine, Ambassador Derrick Heaven, Chief Executive Officer of the Sugar Industry Authority, said refined sugar was being imported mainly by persons presenting themselves as "manufacturers" when, in fact, they were supermarket operators.
Passing themselves off as "manufacturers" allowed them to import the product duty-free, he said.
Karl James, general manager of Jamaica Cane Products Sales Ltd. (JCPS), explained that under government policy, manufacturers import refined sugar duty-free, while other importers were required to pay a 127 per cent duty.
"Because of the 'bandoolo' in the system a lot of the refined sugar is imported by persons who are not manufacturers," he charged.
Ambassador Heaven agreed, noting that as a result of "a perpetuated unjust system" persons who were not manufacturers import refined sugar under guidelines which were not applicable to them.
Mr. James said these irregularities continued despite several representations to the government including to Prime Minister P.J. Patterson, which highlighted the need to address the situation as it poses a threat the local market for sugar.
He said the government's decision to apply a 127 per cent duty on refined sugar for importers, excepting manufacturers, was in an effort to protect the local industry.
Despite their concerns, farmers can expect an increase in payment for the current crop due to an increase in the value of the euro. On the other hand, Mr. James said, consumers could be paying more for local sugar as a result of an increase in the costs of inputs such as fertilisers and chemicals.
The price of brown sugar was last increased by the JCPS in 2000 to an average $12 per pound.
