SRA closes sugar importation program

The Sugar Regulatory Administration closed on Friday a program allowing private firms to import to fill a projected shortage in the third quarter.

"The Philippine SRA has ended its call for open subscriptions from all interested parties," SRA board member Wilfredo Onglao told Reuters.

"This is the third and last call for the crop year ending Aug. 31," Onglao said after no company came forward on Friday to fill an additional quota of 57,250 tons.

That would have completed a total 175,000-ton quota awarded by government to the private sector.

Private firms have so far committed to buy a total of 117,750 tons of raw and refined sugar.

Traders said the SRA, which regulates sugar imports, failed to attract shippers because of relatively high prices on the world market. "Prices remain high in the international market. At 65 percent tariff, if you import the sugar now and bring it here you might not only lose your shirt but also your pants," said one trader.

"If I were to import refined sugar now at 65 percent tariff, my landed cost would be P1,435 per 50-kg bag as against current domestic price of only P1,250," he added.

The state National Food Authority (NFA) bought at a tender on Thursday 54,087 tons of refined sugar from Brazil.

Last week the SRA said it had boosted its estimate of raw sugar output for the current crop year ending Aug. 31 to 1.75-1.76 million tons from an earlier estimate of 1.7 million because of good weather.

Demand in the crop year was estimated at up to two million tons.