Sugar regulator to consider viability, competition issues for new mills

Posted on June 29, 2016

THE Sugar Regulatory Administration (SRA) said it is currently preparing rules that will take into account fair-competition issues in connection with the siting of new mills.

A file photo of Victorias Milling Co. in Negros Occidental -- BW FILE PHOTO
“The SRA is in the process of formulating policies on the establishment of new sugar mills, either in an existing or soon-to-be-created milling districts where new sugar mills shall be located,” read Memorandum Order (MO) No.7 uploaded on SRA’s Web site.

Dated June 15, the MO added that the regulatory regime will consider the supply of sugarcane in the area and the impact of the new mill and the competitive dynamics with existing mills.

“We wanted to put everything in order to avoid unfair competition and ensuring at the same time that sugar mill operations are viable,” said Rosemarie S. Gumera, SRA’s policy and planning manager, in a mobile message.

She added that the number of mills in a particular location is “critical” to SRA’s decision for issuing permits to establish mill sites.

For crop year 2015 -- 2016, a total of 27 mills were operational, 12 of which were located in Region VIII.

The MO requires prospective mill builders to inform SRA of the proposed sugar mills on details of its location, rated sugar mill capacity, source of cane inputs, and timetable of its construction. -- Janina C. Lim