Local raw sugar supply down as of end-October
The country’s stock of raw sugar has declined by more than 20 percent as of end-October, prompting the government to look at using the sugar allocated for exports for local consumption.
The latest data from the Sugar Regulatory Administration (SRA)showed that raw sugar stock as of Oct. 30 reached 150,976.75 metric tons, a hefty decline of 26.89 percent from 206,511.77 MT in the same period last year.
Local production grew by 38.77 percent to 310,622 MT from 223,839 MT last year, but because imports were lower this year, the resulting buffer stock as of the end of October went down.
Demand, on the other hand, rose by 3.44 percent to 248,888 MT from 240,609 MT.
This, combined with the reduction in the country’s buffer of raw sugar, prompted the SRA to craft a policy to use sugar originally intended for exports for local consumption to ease the pressure to hike prices.
“There is an imperative to ensure stable supply of sugar in the domestic market with the increase in the demand of “B” sugar and to stabilize the prices,” the proposed directive read.
Currently, it is soliciting comments on a draft order on the conversion or reclassification of sugar as significant volumes of sugar for “A” (US market) and “D” (world market) have yet to be shipped.
SRA records showed that 11,432 MT of “A” sugar and 5,478 MT of “D” sugar have remained outstanding as of Oct. 16.
The draft order covers any verified unshipped sugar to be sold overseas, regardless of status, issued for crop year 2020-2021 and previous crop years. Reclassifying sugar will be done on a voluntary basis. INQ
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