Millers buck sugar import proposal

MANILA, Philippines — There is no need for sugar importation since the country has ample stocks of sweetener to tide it over during the off-milling season, according to the Philippine Sugar Millers Association (PSMA).

“The country has an abundant supply of sugar this year. Our increased production has filled our warehouses, so there is no need to import at this time,” Jesus Barrera, executive director of PSMA, said in a statement.

The industry group noted that the country’s current raw sugar and refined sugar stocks as of May 12 expanded by double-digit rates year-on-year.

The country’s raw sugar stocks stood at 531,838 metric tons (MT), up 26.4 percent from last year same period’s 420,866 MT, based on latest Sugar Regulatory Administration (SRA) report.

Meanwhile, refined sugar inventory rose by 35.5 percent to 572,398 MT from 422,332 MT.

The PSMA noted that some 135,675 MT of refined sugar in the present inventory were imported stocks brought in last year that are yet to be withdrawn and used.

“Even with sugar milling already closed for the season, we are confident that our current sugar inventories will last beyond the end of the crop year on August 31, 2024,” the PSMA said.

“However, we are monitoring closely the impact of El Niño on the timing of the upcoming harvest for next season,” the PSMA added.

The sugar millers pointed out that there has been a huge drop in sugar demand as indicated by slower withdrawals of stocks on an annual basis.

“Withdrawals or demand of domestic raw sugar and local refined sugar have decreased by 4.23 percent and 7.20 percent, respectively, while withdrawals of imported refined sugar have risen by 16 percent,” the PSMA said.

The country’s raw sugar output as of May 12 rose by almost eight percent to 1.921 million MT from 1.78 million MT recorded volume in the same period in 2023

The PSMA issued the statement more than two weeks after the SRA disclosed that it is studying the possibility of allowing sugar imports during the post-milling season to ensure that the country will have sufficient stocks and prevent skyrocketing prices like what happened two years ago.

No less than President Marcos endorsed the recommendation of the Private Sector Advisory Council-Agriculture Sector Group (PSAC-ASG) to allow the importation of sugar during the off-harvest and post-milling seasons.

Marcos backed the sugar importation proposal between 185,000 metric tons and 200,000 MT. The PSAC-ASG argued that the proposed import volume is necessary to build up the country’s sugar buffer stock.

The SRA said the import proposal being endorsed by the President is aimed at ensuring that the country would not have a shortfall in supply, particularly for refined sugar, once all sugar mills stop operating.

Sugar refineries depend on the country’s raw sugar supply to produce refined sugar.