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Santander Selling Sugar On Local Market Without Permit
posted (May 28, 2018)
The Santander Sugar Group in the Valley of Peace area in the Cayo District is in serious trouble with the Ministry of Trade tonight after the export company started selling sugar domestically. The company has EPZ status meaning they get certain exemptions on the clear understanding that they can only export. But, they've been doing more than that.

This is a photo of Santander's Plantation White sugar being sold at a store in Orange Walk. It's presence on the local market has infuriated cane farmers - who are already going through a difficult year with historic lows in sugar prices. Now they say they are facing competition in a market from a company not licensed to sell locally. Here's what Fred Ortega of the Belize sugar Cane Farmers Association told CTV-3 in Orange Walk:..

Fred Ortega, BSCFA
"When it was presented to us that Santander is coming into the country, because when we got to know that Santander is coming, is because they were already building. But questions were asked to the past ministers of agriculture and questions were asked to the present minister of agriculture is Santander would be granted permission to sell sugar to the local market and the answer was no. Because the sugar that they will be producing will be sugar that will be sold out of the country - to Guatemala or to other countries Not into the local market and now that this is happening, it really concerns us, because then its something that is coming behind our backs - like backstab to the North. I will say to the North, because not only to the farmers. This creates a negative impact to us in the industry with the prices we presently are experiencing and with this happening sugar from other companies is flooding the market, then it reduces the amount of sugar that is being prepared by BSI for the local market."

Salvador Martin, Chairman - BSCFA
"I want to be clear, the only way they could sell that sugar, that means that they got permission and we really need to know from when, where and how that comes from."

Minister of State in the Ministry of Trade Tracy Panton today told us that Santander, quote, "does not have permission to sell plantation sugar locally". She says the company applied for a waiver to sell locally last week Friday - and that waiver has not been reviewed yet.

She warned that they could face a fine, or government could go as far as rescinding their EPZ status.

She says Government also has the option of confiscating the Santander sugar that is currently on the local market - which is already being looked at in tandem with the customs department.

She added that Santander has been advised of the violation, quote "in the strongest terms."

But, under what grounds are they applying for an EPZ waiver? Minister Panton explains that Santander would like the opportunity to sell to the local market and is requesting a waiver to supply 15 % of local sales.

A representative for Santander said, quote, "Santander is just adapting to different markets. It was always the plan to sell a small amount locally and under the EPZ regulations any company under this program can sell some part of its production locally paying the taxes that are required. Prices of sugar domestically is regulated by the government. So the price will be the same as the sugar sold by BSI." End quote.

The company says that at this time, there is no further delivery to the local market, pending sorting out the waiver with the ministry. They are applying to sell 1,500 metric tonnes of brown sugar and 3,500 metric tonnes of white sugar into the local market which represents 30% of local consumption. The company rep adds that Santander has been meeting with the ministries over the last week.

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