The National Federation of Sugarcane Planters said the entry of another 150,000 metric tons (MT) of refined sugar will be beneficial to both consumers and producers if released in a “calibrated manner.”
This was the reaction of federation president Enrique Rojas on the issuance last July 7 Sugar Order (SO) number 7 for crop year 2022- 2023 allowing the entry of the said volume of refined sugar not later than September 15 as buffer stock before all mills start their milling operations.
“The key is in the timely release and volume at which such buffer stock will be introduced in the local market,” said Rojas.
He said while some local sugar mills may start producing sugar by September 1, it will take about two weeks for millgate sugar to reach retail outlets and consumers.
“There is a lag both in production volume and in the period sugar reaches the market. We expect that SRA (Sugar Regulatory Administration) will be judicious enough to release the additional imported sugar in a calibrated manner, in such small volumes that will answer the gap in production, so that millgate prices at the start of milling will not be adversely affected by this 150,000 MT importation,” Rojas said.
SRA said SO 7 will ensure a sufficient actual supply of sugar for domestic consumption and provide a two-month buffer stock.
Pablo Azcona, SRA acting administrator, told reporters without the issuance of SO 7, the supply will run low from August 31.
“Right now, we have very ample supply so there is no reason for the prices of refined sugar to go up,” Azcona said.
Azcona added that from the 440,000 MT of refined sugar that entered the country under SO 6, 85 percent has been purchased by beverage makers and manufacturers and only 15 percent went to the consumer market.
“SO 7 is designed for the consumer market. We need to find ways how to lower retail prices of refined sugar without affecting the farmgate price of our farmers,” Azcona said.
Department of Agriculture’s monitoring of public markets in the National Capital Region on July 6 showed the prevailing retail price of sugar ranged from P86 to P110 per kg for refined sugar, P82 to P90 per kg for washed sugar, and P78 to P90 for brown sugar.
Mill site monitoring showed the composite price of raw sugar as of June 25 was 3,000 per 50 kg bag.
