Philippines to import 200,000 tons of sugar to stabilize prices

The country will import sugar to stabilize domestic prices that increased despite stable local production.

This comes after the earlier importation of rice, meat products and fish.

The Sugar Regulatory Administration (SRA) said 200,000 metric tons of sugar will be imported.

“SRA received instructions from the Department of Agriculture to temper the current level of high local sugar prices that it considers at this time a sugar import program,” it said.

The SRA said 100,000 metric tons would be standard grade refined sugar while the other 100,000 MT would be “bottlers’ grade” refined sugar used by the beverage industry.

The total volume is higher than what sugar producers have recommended.

Vicmico Planters Association president Aurelio Valderrama said his group recommended only 50,000 MT a month, up to a maximum of 150,000. This was supported by the Confederation of Sugar Producers Associations Inc. Negros and other sugar producers, Vicmico said.

SRA said wholesale and retail prices of raw sugar and refined sugar reached record highs after Typhoon Odette devastated many parts in the country including the sugar-producing regions of Negros, Panay and Eastern Visayas.

Damaged were the actual sugarcane, sugar stocks in warehouses and facilities and equipment of sugar mills and refineries in key sugar milling districts.

As a result, wholesale price of raw sugar in the National Capital Region (NCR) is now P2,000 per 50-kilogram bag (LKg) and refined sugar is P2,900 per Lkg, both “historic highs,” the SRA said.

The retail price of raw sugar in certain markets has hit P48 a kilo while the retail price of refined sugar ranges from P57 a kilo to P60 a kilo, higher than the suggested retail prices for raw sugar and refined sugar.

The devastation caused by the storm lowered raw sugar production estimate for crop year 2021 to 2022 to 2.072 million MT from 2.099 million MT.

The sugar refineries association also slashed its sugar output forecast to 16.748 million LKg from its initial projection of 17.572 million LKg prior to Odette.

SRA Administrator Hermenegildo Serafica said projections were lowered to reflect the impact of the typhoon on the country’s sugarcane sector, which incurred losses amounting to P1.15 billion.

Serafica said the production estimate took into account the damage incurred by three refineries and sugar plantations in the Visayas.

He added sugar mills and refineries had resumed production and “local production is stable,” citing the SRA weekly sugar production report, which showed raw sugar production was up 4.4% while refined sugar production rose 46.4% compared to the same week last year.

SRA data showed that as of Jan. 23, raw sugar production reached 869,120 MT and supply was 1.1 million MT against a demand of 715,888 MT. Refined sugar production totaled 291,110.15 MT and supply was 523,265.95 MT with demand reaching 389,462.25 MT.