BACOLOD City – The Sugar Regulatory Administration (SRA) has suspended the release of imported sugar to the market due to a drop in the farmgate price of local sugar.
In Resolution 2023-159, dated Sept. 26, 2023, which was made public only on Thursday, Oct. 12, the SRA resolved “to suspend the deadline set for importers under Sugar Order (SO) No. 07, series of 2022-2023, to reclassify, distribute, and dispose of imported refined sugar until further notice.”
The resolution was approved by SRA Undersecretary Domingo Panganiban, ex-officio chairperson; SRA Administrator Pablo Luis Azcona; SRA Board member Ma. Mitzi Mangwag, millers’ representative; and SRA Board member David Andrew Sanson, planters’ representative.
This decision allows the regulator to “maintain a reasonable volume of sugar available for domestic use, protect the interests of farmers and millers, and sustain a reasonable farmgate price for raw sugar of about P3,000 per bag.”
The suspension order also encompasses 150,000 metric tons (MT) of imported refined sugar under SO No. 7, issued in July of this year.
SO No. 7, series of 2022-2023, authorized the importation of 150,000 MT of refined sugar that arrived in the Philippines on Sept. 15. This sugar could be classified as “C” (Reserve Sugar) and is subject to future disposition or reclassification, as deemed necessary by the SRA.
Azcona stated that of the 150,000 MT, applications for reclassification would be put on hold for around 100,000 MT. This move to halt applications stemmed from a “speculative statement” made on Aug. 24, which caused farmgate prices to fall. Azcona pointed out that the farmgate price of local sugar had decreased to P60 per kilo, yet he acknowledged that retail prices remain as high as P110 due to overpricing.
He characterized the market situation as “abnormal,” with farmgate prices fluctuating by P100 on a weekly basis.
This year, at least 550,000 MT of sugar were imported. This includes the controversial 400,000 MT awarded to three importers and the 150,000 MT now being utilized as buffer stocks.
The SRA indicated that the next importation would occur in April or May 2024, following the milling season. Furthermore, the SRA projects the total local sugar production to reach 1.85 million MT for the crop year 2023 to 2024, spanning from Sept. 1, 2023, to Aug. 30, 2024. (With a report from the Philippine Star)/PN
