The Sugar Regulatory Administration (SRA) is planning to issue another order which will allow traders to secure prioritized sugar import allocations in the future in exchange of a voluntary purchase from the local sugar supply.
A draft of the order provided by the agency to the media yesterday said this will ensure stable and reasonable farm gate prices of sugar.
The SRA has conducted a similar scheme last year when it temporarily turned the purchased local sugar stocks into reserves for no more than 90 days.
SRA administrator Pablo Azcona said in a message yesterday the official signing of the draft sugar order is targeted within the month.
Under the draft, the voluntary limited volume purchase of locally produced raw sugar will be open to farmers, farmers’ groups, farmers’ cooperatives, farmers’ associations, sugar millers, sugar refiners, manufacturers and beverage makers, who are licensed by the SRA as domestic or international sugar traders that are in good standing.
The draft order said the initial maximum volume of locally produced sugar to be covered will be 300,000 metric tons (MT) of raw sugar for crop year 2024 to 2025.
Local sugar stakeholders said the move will benefit farmers.
“We laud Administrator Azcona for crafting a program which will protect us from price fluctuations during the peak of the harvest, for discussing with all stakeholders the proposed program, and for reiterating there will be no importation until May or June when the harvest is finished,” the Sugar Council said, in a separate statement.
The Sugar Council is an alliance of three sugar farmers’ federations which, together, account for 67 percent of the country’s affiliated sugar production.
The group said the SRA conducted consultations on the said initiative.
Based on the Department of Agriculture’s monitoring of public markets in the National Capital Region, prevailing retail price as of last Tuesday ranges from P74 to P90 per kg for refined sugar, P67 to P85 per kg for washed sugar and P64 to P85 per kg for brown sugar.
SRA millsite monitoring also showed composite price of raw sugar as of January 5 was at P2,600.61 per 50 kg bag.