SRA moves to beef up sugar supply for local market
The Sugar Regulatory Administration is boosting domestic sugar supply by reallocating sugar earmarked for exports to stabilize the supply and prices of the commodity in the market.
The SRA ordered on Wednesday the immediate conversion of all remaining and unshipped “D” sugar, or those allocated for export to the world market, to “B’ sugar, or the stocks for local consumption.
The decision was made in response to the call of industry stakeholders who were “alarmed” by the rise in sugar prices, which hit P1,750 per 50-kilo bag (LKg) from the standard rate of P1,450 per LKg.
Given the projected decline in sugar production this crop year, prices have been escalating. This was despite the assurance given by the SRA that there was no shortage.
A letter was sent collectively by industry stakeholders requesting the body to bulk up the supply for the domestic market. This is especially crucial as higher excise tax on high-fructose corn syrup led beverage manufacturers to switch to using sugar as a cheaper alternative.
“Based on experience, we can say for certain that if these prices persist, or worse, climb further, we can expect a backlash from our consumers and overreaction from the national government,” industry leaders said.
“Households will reduce their sugar consumption, while our institutional and industrial consumers will reformulate their products by using less sugar and more alternative sweeteners. The foregoing scenario will be disastrous for the industry and all its stakeholders perhaps for years to come,” they added.
