Phl to import 424K MT of refined sugar

The Sugar Regulatory Administration is allowing the importation of 434,000 metric tons of refined sugar to boost domestic supply and buffer stock to stave off spiralling prices following the end of the milling season.

In Sugar Order No. 8, authorizing the importation, the SRA said the end of milling season and the finite supply of sugar prompted the decision to import to ensure stable supply and prices in the coming months, until the next milling season.

“The SRA deems it necessary to implement a timely government intervention by way of importation of sugar,” the SO 8 read.

“The intention of this sugar import program is to ensure that the country will continue to have sufficient actual supply of sugar for domestic consumption and for buffer stock.”

The board said it took into consideration historical data on supply and withdrawal of the sweetener in determining the import volume.

SO 8 states that the volume of sugar imports would be allocated to eligible parties who participated in the agency’s previous voluntary purchase and export program.

The SRA Board linked the import order to its previous programs that sought to prop up sugar prices as well as the income of cane farmers, Business Mirror reported.

Eligible participants are those who purchased raw sugar from local farmers at a premium price and those who exported raw sugar to the United States that filled part of the allocation under the tariff rate quota (TRQ) scheme of Washington.

SRA said all sugar imported should arrive in the country starting July 15 and not later than November 30.

Sugar imported under SO 8 will be classified as “C” or reserve sugar, which means that it would not be circulated in the domestic market unless it is reclassified by the SRA.

For this import program, the agency would collect P33 per 50-kilo bag of imported refined sugar as a clearance fee.

The latest data from the SRA showed that the country’s raw sugar output climbed to 2.063 million metric tons (MMT) as of June 22. This is higher than the 1.92 MMT produced in the previous crop year.

The latest figure also exceeded the agency’s initial and revised forecast of 1.7 MMT and 1.84 MMT, respectively, for the current crop year, which will end on August 31.

Historical data from the PSA showed that the latest raw sugar output is the highest since the 2.14 MMT recorded in crop year 2020-2021.