The Philippine Chamber of Food Manufacturers Inc. (PCFMI) said some of its members report their current stocks of refined sugar will be exhausted as early as next month.
“The inability to import refined sugar that meets the quality standards of food manufacturers poses a threat to food security in the country, specifically the continued supply of essential food commodities. Existing sugar stocks for food manufacturing are dwindling and therefore importation under the circumstances is necessary,” PCFMI said in a statement.
The Sugar Regulatory Administration recently issued Sugar Order No. 3 (SO3) allowing the importation of 200,000 metric tons (MT) of sugar.
Under SO3, 100,000 MT will be for standard grade refined sugar for industrial users while the rest will be for bottler’s grade refined sugar.
“Due to the current local shortage of refined sugar that conforms with the quality requirements of food manufacturers, particularly premium and bottler’s grade refined sugar, we join the SRA in its assessment that there is an urgent need for such importation,” PCFMI said.
The group said only 7 of the 20 raw sugar mills in the country produce refined sugar with four able to supply to major food manufacturers.
“These suppliers have informed our members that the destruction to crops caused by Typhoon Odette last December damaged refineries and refined stocks, thus affecting local sugar supply. Also, affected refineries ceased production for a month until power was restored. Moreover, the lack of available containers and the congestion at the ports of Bacolod and Manila have further aggravated the sugar supply situation,” PCFMI said.
Citing SRA data, the group said importation is needed as average price of refined sugar in the first week of February has reached P3,321.50 per 50-kilogram bag (Lkg), up 25 percent from the previous year’s price of P2,664.50 which is still higher compared to the current best estimated global price for refined sugar at P1,650 per LKg.
