The Sugar Regulatory Administration (SRA) has allowed the private sector to import as much as 250,000 metric tons to meet the projected increase in demand amid low domestic production.
This is the second importation the agency has authorized for the crop year, which began in September last year. The first one was in October when it allowed the importation of 150,000 MT of sugar.
According to the agency’s latest order, the current projected output would not be enough to keep up with the increased demand for raw and refined sugar.
If left unaddressed, this may trigger spikes in the prices of sugar in the market.
“One of the objectives in the creation of SRA is to ensure adequate and stable supply of sugar for domestic consumption in order to stabilize prices at a level reasonably profitable to the producers and fair to consumers,” the order said.
“There is a need for a timely government intervention by way of importation to maintain a balanced supply and demand of sugar to prevent unreasonable increase in prices that shall address inflation,” it added.
Of the 250,000 MT of sugar to be imported, 100,000 MT would be earmarked for industrial use while the balance would be used for domestic consumption.
For the current crop year, sugar production is seen to drop by 8 percent to 2.08 million MT from 2.25 million MT.
As of the end of July, the average price of raw sugar had hit P1,686 per 50-kilogram bag, up from P1,663 in the first week of the same month.
Retail prices, however, have stabilized to an average of P50 a kilo.
Interested importers may submit their applications to the SRA on or before Aug. 15, while shipments must arrive in the country no later than Oct. 31.