LOW sugar production and early milling justify the need for another batch of imports to address demand for June to August, according to the Sugar Regulatory Administration (SRA).
“As the government agency regulating sugar supply, SRA has a mandate to ensure food security. What the detractors of importation have failed to consider is the issue on food security, in particular, the availability of supply and the issue on affordability of sugar. SRA has continuously monitored and studied the figures which are based on historical and actual data,” said Hermenegildo Serafica, SRA administrator, in a statement yesterday.
Manuel Lamata, president of the United Sugar Producers Federation (UNIFED) said the group obtained a copy of a draft of Sugar Order (SO) No. 4 where SRA plans to import 350,000 metric tons (MT) of raw and refined sugar on top of the 200,000 MT under SO3.
The latter is subject to preliminary injunction.
About 100,000 MT under SO3 will be for standard grade refined sugar while the rest will be for bottler’s grade refined sugar.
Of the 350,000 MT sugar imports under SO4, 250,000 MT will be refined sugar, 150,000 MT of which was specified as premium grade or bottlers’ grade refined sugar as the remaining 100,000 MT will be raw sugar.
“Production of sugar is lower due to the onslaught of typhoons such as Odette, excessive rain and reduced sunlight due to the La Nina. Another effect of the rise in sugar prices is the rush of farmers to mill their canes while prices are up even though these canes are not yet fully mature and thus have less tonnage and sugar content. As a result, aside from lower sugar production when compared to last crop year, milling will also be ending earlier than expected,” Serafica said.
The SRA added despite the strong defiance of local producers, importation is needed to arrest increasing prices.
DA’s monitoring of 13 public markets in the National Capital Region as of yesterday showed the prevailing retail prices of sugar were up from last month.
Refined sugar was at P70 per kg from P65 per kg while washed sugar was at P52 per kg from P50 per kg.
Brown sugar remained at P50 per kg. (Malaya Business Insights/Jed Macapagal)
