The Dominican Association of Sweets Manufacturers maintains that with the issuing of Decree 15-04 on 15 November, the government is effectively doing away with the window that had been left open for local industries using sugar as an input material to compete.
The new decree incorporates an article that forces customs to dispatch sugar only companies that have a permit from the National Sugar Institute (INAZUCAR), despite their being protected under export incentive Law 84-99 or the free zone regime. INAZUCAR represents the interests of sugar producers.
The association says that the decree violates incentive laws in effect and appeals to the President, considering that the industries that use sugar generate thousands of jobs.
The association, furthermore, is requesting that the authorities review the price of sugar to adjust it to the level of February of this year. Sugar prices increased 25% between January and March in order to make up for the depreciation of the peso. Now that the peso has bounced back, the manufacturers are urging that this be taken into consideration and a new price be set.
The manufacturers represented by the Association complain that they already are forced to subsidize the sugar industry because of the monopoly on sugar imports imposed by the government to protect the sugar producers. They explain that they could import sugar at US$0.19 the lb, but are forced to buy it from the producers at US$0.29. Sugar producers are the only authorized by the government to import sugar. The manufacturers say that the subsidy amounts to RD$600 million.
The price of sugar in the DR is fixed by the Ministry of Industry & Commerce and the National Sugar Institute (INAZUCAR).
The association says that the decree violates incentive laws in effect and appeals to the President, considering that the industries that use sugar generate thousands of jobs. The association is requesting that the authorities review the price of sugar to adjust it to the level of February of this year. Sugar prices increased 25% between January and March in order to make up for the depreciation of the peso. Now that the peso has bounced back, the manufacturers are urging that this be taken into consideration and a new price be set.