Sugar imports eyed in September

MANILA, Philippines — The government plans to bring in a fresh round of 150,000 metric tons (MT) of sugar by September, assuring local producers that it will not affect domestic production so as not to depress prices.

In an interview with reporters yesterday, Sugar Regulatory Administration (SRA) administrator Pablo Luis Azcona said the new round of sugar importation aims to ensure a comfortable buffer stock and avoid another sudden spike in prices.

This comes after President Marcos approved the maximum of 150,000 MT sugar imports to boost supply.

Marcos is the concurrent agriculture chief who chairs the SRA Board.

“If we do the additional imports of 150,000 MT, it should be in the Philippines before the start of the next milling (season) by Aug. 30 or sometime in September, so it does not affect local production,” Azcona said.

Azcona clarified, however, that details of the importation will be decided only at the end of the milling by the end of the month.

Unlike the two previous imports, the SRA chief gave assurance that the process this time around will not be marred with any issue, given that it will be open to all traders.

Amid the planned importation, Azcona said there is a need to run after demand which has been growing consistently. Per capita demand for sugar has increased to 17.1 kilograms.

Over the past years, SRA has been expecting an additional 10,000 MT in demand every month as more people are consuming the commodity.

The SRA head also argued that the need to maintain a buffer stock will help avert a surge in retail prices, which is now at P85 to P110 a kilo.

The SRA is likewise anticipating a reduction in production to hit around 1.8 million MT.

“If there is no buffer, prices will go up and the government will be forced to do some drastic measures and the industry as well as the consumers will just suffer,” Azcona said.

Further, the expected El Niño, while it will only be felt next milling season, could reduce production by about 10 to 15 percent.

“El Niño will be felt next milling season. Now sugarcanes are already halfway in their maturity. But if it will hit us hard, we would expect a drop in production,” Azcona said.