SRA sees lower sugar output, eyes new importation order

Metro Manila (CNN Philippines, June 6) — Authorities on Tuesday expressed alarm over a significant drop in refined sugar output which may trigger another round of importation.

Sugar Regulatory Administration (SRA) acting chief Pablo Azcona said there was a decline in production of about 100,000 metric tons (MT) caused by refineries ceasing operations for lack of biofuel made from crushed sugar cane stalks.

He said the country may encounter a shortage of about 50,000 MT of refined sugar.

Supply is expected to last only until Aug. 31 before the milling season.

The SRA said it is planning to import 150,000 MT of refined sugar to fill in the possible gap as well as provide buffer stock.

“‘Yun din yung reason that we're thinking of new imports. As promised sa presidente, we will conduct all the necessary inventories first and find out if our computations are accurate,” Azcona told reporters.

[Translation: That’s also the reason why we’re thinking of new imports. As promised to the president, we will conduct all the necessary inventories first and find out if our computations are accurate.]

READ: Marcos greenlights importation of up to 150K MT of sugar

The latest sugar imports came from the controversial Sugar Order No. 6 that took effect on Feb. 16, allowing the importation of 440,000 MT of the commodity.

SRP for refined sugar

Azcona reiterated the push for the suggested retail price of ₱85 per kilogram for refined sugar, which he said would be “fair” for all industry players and consumers.

“We still see a low of ₱85, although ‘yung high natin is still at ₱110-112; and alarming po ‘yan — alarming in the sense na the farmers need to keep ‘yung farm gate price nila sana sa ₱60, so they will continue farming and making it a profitable business,” he said.

[Translation: We still see a low of ₱85, although our high is still at ₱110-112; and that’s alarming — alarming in the sense that the farmers need to keep their farm gate price at ₱60, so they will continue farming and making it a profitable business.]

Azcona said the Department of Agriculture has already signed an agreement with the Bureau of Customs for the sale of the smuggled refined sugar in Kadiwa stores at ₱70 per kilogram “to pacify the high prices in the markets.”