Government to allow 200,000 MT sugar imports

Government to allow 200,000 MT sugar imports

MANILA, Philippines — The Philippines would import at least 200,000 metric tons (MT) of refined sugar by September to ensure ample stocks and prevent price spikes in the market.

Agriculture Secretary Francisco Tiu Laurel Jr. said the Sugar Regulatory Administration (SRA) board, which he chairs, would approve the importation program during their meeting next month.

He said the volume could still increase depending on their deliberations on the country’s sugar supply situation.

Nonetheless, he noted that the minimum 200,000 MT import volume is being eyed to plug the foreseen shortfall in sugar stocks by August and tide over the country until the next milling season in October.

“That is for the gap before the harvest and the refining season,” Tiu Laurel said in an interview with reporters late Wednesday.

The importation program has been on the table for six months already with industry stakeholders, including planters, being consulted about the matter, the agriculture chief said.

Earlier this year, no less than President Marcos endorsed the sugar importation proposal of the Private Sector Advisory Council - Agriculture Sector Group during the off-harvest and post-milling season to keep prices of the commodity stable.

The country has already entered its post-milling season with the next sugar crop year set to begin on Sept. 1.

Total refined sugar stocks of the country as of June 9 stood at 492,985.7 MT, about 14 percent higher than the 432,215.05 MT recorded inventory in the same period last year, based on SRA data.

SRA data also showed the country has 436,229 MT of raw sugar stocks, up by 29 percent from last year’s 337,286 MT.

The SRA earlier estimated that the country’s monthly sugar demand is between 180,000 MT and 240,000 MT.

SRA administrator and CEO Pablo Luis Azcona said Tiu Laurel was referring to the import program under the previous Sugar Order (SO) 2 that paved the way for pre-qualification of possible importers for a prospective import program on the condition that would purchase sugar from local farmers at higher prices.

Azcona said the SRA has already pre-qualified and pre-allocated the possible import volume across the participants of SO 2 based on their actual support to local farmers.

“As we said previously, we will activate an import plan should the trigger stock level be reached to ensure a stable supply and stable price for our retail and industrial consumers, as well as to ensure that our farmers will not be affected,” he said yesterday.

The importation would minimize speculation in the market that often leads to price spikes, according to the United Federation of Sugar Producers of the Philippines (UNIFED).

“This will fill in the shortage before harvest season starts on September. Harvest this coming crop year will be delayed due to El Niño and when we were consulted about this matter, we approved the proposal,” UNIFED president Manuel Lamata said yesterday.

Sugar prices skyrocketed previously to record highs because of delays in importations, leaving both retail consumers and industrial users scrambling for supply, according to industry sources.

“When I assumed office the price of refined sugar was P120 per kilogram, now it is P75 per kilogram,” Tiu Laurel said.