Philippines importing another 150,000 MT of sugar in September
Credit to Author: Danessa Rivera| Date: Sat, 8 Jul 2023 00:00:00 +0800
MANILA, Philippines — The Philippines is set to bring in another 150,000 metric tons of refined sugar by mid-September to address the supply shortfall and ensure stable prices of the sweetener.
President Marcos, as agriculture secretary and Sugar Regulatory Administration (SRA) board chairman, approved Sugar Order 7 (SO7), which calls for the importation of a maximum of 150,000 MT of refined sugar as the second importation program for this year and the third for calendar year (CY) 2022-2023.
It was also signed by Department of Agriculture Senior Undersecretary Domingo Panganiban, acting SRA administrator Pablo Luis Azcona and acting SRA board member-millers’ representative Mitzi Mangwag.
The latest importation program will “ensure sufficient actual supply of sugar for domestic consumption, as well as a two-month buffer stock.”
“Despite the release of Sugar Order 6 import program Series of 2022-2023, the further reduction of sugar production volume for Crop Year 2022- 2023 is forecasted due to early start and early end of milling; and in anticipation of the possible shortfall of supply, and to bridge the gap between the supply and the demand, the SRA finds it imperative to open a second import program to address the demand for CY 2022-2023,” the order read.
Issued last February as the first importation program this year, SO6 permitted the importation of 440,000 MT to augment supply and arrest rising retail prices of sugar.
Refined sugar imported under SO7 will be for the consumption of institutional users, retailers, wholesalers, traders and manufacturers/industrial users.
In the latest import order, the SRA board will set and approve the volume allocated to an eligible importer.
Apart from documentary requirements, an eligible importer shall purchase or shall have purchased this crop year an equal volume of locally produced refined sugar as the volume of imported sugar that may be allocated to it under SO7.
“Should the Eligible Importer purchase or has purchased for CY 2022-2023 locally produced raw sugar, the conversion shall be on a 1:1.2 basis. The deadline for the purchase of locally produced refined/raw sugar shall be on Aug. 31, 2024,” the order said.
Once in the country, these imports shall be classified as C, or reserve sugar, which will be reclassified as needed by the SRA.
“Only after approval from SRA Board has been obtained can the stocks be released from SRA registered warehouses or from the vessel, for sale to the domestic market,” the order read.
Earlier, Azcona said the country’s refined sugar production is estimated to be lower by 100,000 metric tons this crop year due to early milling ahead of the usual September start and weather disturbances.
“We are at around 640,000 MT (in refined sugar production), but refineries have ended and we’re still far from the 750,000 MT produced last year,” he said.
As of June 25, refined sugar production was at 640,908 MT, down 10.99 percent from 720,062.55 MT produced a year earlier.
Based on DA’s latest monitoring in Metro Manila wet markets, refined sugar retails at P86-110 per kilo while raw sugar is sold at P78-90 per kilo as of yesterday.
A year earlier, refined sugar retailed at P85 per kilo while raw sugar was sold at P70 per kilo.
In a statement, the National Federation of Sugarcane Producers (NFSP) is requesting the SRA for a calibrated release of additional volume of sugar.
According to SRA, the 150,000 MT additional importation is intended as buffer stock before all mills start their milling operations, NFSP president Enrique Rojas said.
With sugar mills in the country presumably to start producing sugar by Sept. 1, Rojas, however, said not all of them will start milling simultaneously.
He stressed that it takes about two weeks for millgate sugar to reach the shelves of most retail outlets and to consumers. — Gilbert Bayoran