Citing surplus, millers buck new sugar importation
MANILA — The Philippine Sugar Millers’ Association (PSMA) sees no need to bring in imported sugar at this time, citing the surplus in domestic production.
“The country has an abundant supply of sugar this year. Our increased production has filled our warehouses, so there is no need to import at this time,” PSMA executive director Jesus Barrera said in a statement on Tuesday.
“Even with sugar milling already closed for the season, we are confident that our current sugar inventories will last beyond the start of the next crop year, which is estimated to be on [Oct. 1], 2024,” he added.
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PSMA made the statement as the Sugar Regulatory Administration (SRA) hinted at authorizing another round of sugar importation to meet possible supply shortfall and stabilize prices before the next milling season.
SRA Administrator Pablo Luis Azcona said early this month they were studying such proposals but clarified that initiating any plans is “not that urgent yet” and would only proceed with importation if the “trigger point” is reached—meaning the country’s buffer stock is less than three months’ worth of supply.
“When we need to import is still undergoing a study to determine if the demand is maintained, decreasing or increasing,” he said in an interview with reporters via Zoom.
In the event the SRA authorizes an importation, Azcona said the plan would be to source 185,000 to 200,000 metric tons (MT) of sugar from abroad between July and September or before the planting season begins so as not to affect sugar farmers’ livelihood.
Raw sugar output up 10.2%
Citing data from the SRA, the group said raw sugar output had totaled 1.921 million MT as of May 12 during the current cropping season. It already surpassed the 1.799 million MT of raw sugar produced in the previous crop year.
At the same time, the PSMA said refined sugar production had risen by 10.2 percent to 687,823 MT from 624,389 MT previously.
“Inventory levels have also risen significantly, with a 26-percent increase in raw sugar and a 35-percent increase in refined sugar compared to the previous year’s inventory levels, totaling 1.15 million tons raw equivalent,” it added.
READ: PH may reduce sugar importation in 2024, says DA chief
The inventory includes 135,675 tons of imported refined sugar that were brought in last year that were still unused.
Meanwhile, the demand for the sweetener declined, with withdrawals—referring to the volume of sugar released from warehouses–decreasing by 4.23 percent for domestic raw sugar and 7.2 percent for local refined sugar. Withdrawals of imported refined sugar climbed by 16 percent.
Azcona had said the domestic sugar supply was stable and farmers were enjoying better mill site prices while retail prices dropped.
