THE Sugar Regulatory Administration (SRA) is assuring consumers of stable sugar prices following the announcement to import approximately 240,000 metric tons (MT) of refined sugar for buffer stocking.
SRA Administrator Pablo Luis Azcona said on Monday that the planned importation would help maintain the current retail price of refined sugar for the benefit of consumers.
Azcona said the importation would also ensure “that our farmers of which 85 percent are land reform beneficiaries have a fair and stable price.”
Azcona further said that current sugar stocks were sufficient to last until new imports arrive, and that refineries were expected to be operational by December. Meanwhile, mills are set to begin processing on September 15 and be fully functional by October.
Agriculture Secretary Francisco Tiu Laurel Jr. earlier said that the importation would fill a projected sugar gap and maintain the country’s supply until the next milling season in October.
“The intention of this sugar import program is to ensure that despite the projected ill-effects of El Nino for Crop Year 2024-2025, the country will continue to have sufficient actual supply of sugar for domestic consumption and for buffer stock,” the order states.
The SRA announced the first sugar import program for crop year 2023-2024 in an order dated Aug. 8, 2024.
The order covered importation of 240,000 MT of refined sugar and is open to qualified participants of Sugar Orders 2 and 3.
Under Sugar Order 2, potential importers are required to first purchase and classify sugar as reserve before being eligible for the import program. A maximum volume of 176,500 MT of refined sugar for eligible importers qualified under the said order.
Participants under Sugar Order 3, meanwhile, can import at least 63,500 MT of refined sugar. Azcona said this would specifically address the shortfall from sugar exports to the United States, a market where domestic prices are lower, potentially leading to losses for exporters.
Data from the SRA showed that as of July 21, the total refined sugar stocks in the country reached 396,339 MT, around 18 percent less than the 483,373 MT inventory reported during the same period last year.
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