The local sugar industry is welcoming the new year with a robust inventory, which strengthens the possibility for the Sugar Regulatory Administration (SRA) to reject any plan or proposal to import the commodity this year.
As of Dec. 6, the country’s supply for raw and refined sugar stood at 662,609 metric tons (MT) and 451,164 MT, respectively, based on data from the SRA website.
Factoring in the projected demand, this would leave warehouses with an overhang of 255,040 MT of raw sugar and 193,624 MT of refined sugar.
According to Raymond Montinola, spokesperson of the Confederation of Sugar Producers, a healthy year-end inventory for raw and refined sugar would be 200,000 MT and 250,000 MT, respectively, to cover the lean season before another crop year begins in September.
Anything in excess may be detrimental to stakeholders as it would require additional storage to prolong shelf life. As such, millers and planters may be forced to sell their produce at losing prices just to dispose of the surplus.
SRA board member Emilio Yulo, in an earlier interview with the Inquirer, said that “importation is out of the question” especially if the coronavirus pandemic extends until this year.
More than the favorable weather conditions for planting sugarcane, it is the COVID-19 contagion that allowed the industry to keep a high inventory even without imports.
The temporary closures of several food establishments weakened the industrial demand for the sweetener, where about 60 percent of the country’s supply goes to.