PHL may run out of sugar by August–sra
THE country’s sugar stocks will be depleted by August as demand for the sweetener has outpaced supply due to lower cane production and the delay in import arrivals, according to the Sugar Regulatory Administration (SRA).
Calculations made by the Department of Agriculture (DA) and the SRA showed that the country will run out of refined sugar as early as the last week of July.
Latest estimates made by the SR A indicated that the country’s current raw sugar stocks of 248,195.40 metric tons (MT) will be wiped out by August 4 while the current supply of refined sugar of 109,004.5 MT will be totally consumed by July 29.
Agriculture Undersecretary Fermin D. Adriano said the computation made by the DA’S economic team showed a sugar supply deficit of 203,000 MT and a refined sugar shortfall of about 332,000 MT.
SR A Administrator Hemernegildo R. Serafica said the country is already “eating up” its sugar buffer stock.
Because of this, Serafica said the country will not have any carryover stocks of sugar at the start of the next crop year on September 1.
“That is why there should be carryover sugar stocks at the end of each milling period. But this time, as it is, we won’t have any carryover stocks,” he said in a statement.
Historically and ideally, Serafica said the country must have carryover stocks of 250,000 MT of raw sugar and 200,000 MT to 250,000 MT of refined sugar at the end of any given crop year.
“Unfortunately, what is happening is even our carryover stocks from last year is (running out). So we are now already consuming what would have been our buffer stock because our imports were delayed.” (Related story: https://businessmirror.com.ph/2022/06/22/phl-faces-raw-sugar-shortageas-demand-surges/)
‘Up to BBM’
SERAFICA said one of the options of government to plug the shortfall in domestic sugar supply is to import since it will take some to build up stocks from local sources. He noted that the milling of raw sugar starts in December and peaks in the first quarter of the succeeding year, while refined sugar production begins once there is an ample supply of raw sugar.
“If we rely on our local production alone and not allow importation, by August we won’t have enough sugar and we won’t have any carryover stocks for our needs in the coming months until production builds up.”
However, Serafica said it is up to the incoming administration of President-elect and incoming Agriculture Secretary Ferdinand R. Marcos Jr. if the country would resort to importing more sugar.
“We leave [it] to the incoming administration. What the SR A is doing now is to implement SO 3 [Sugar Order 3] as far as the shortage is concerned,” he said in a press briefing on Wednesday.
SO 3, which reached the courts, authorized the importation of 200,000 MT of refined sugar, of which half are bottlers’ grade and half are standard refined grade.
The SRA had also planned to authorize the importation of 350,000 MT of sugar to further boost domestic sugar supply and prevent price spikes. Based on the draft SO, the volume consists of 250,000 MT of refined sugar and 100,000 MT of raw sugar. (Related story: https://businessmirror.com.ph/2022/04/07/phl-eyeing-importation-of-350kmt-of-sugar/)
However, the SRA did not push through with the plan after it received a legal opinion from the Office of the Government Corporate Counsel that it can continue implementing SO 3 except in regions where a restraining order or preliminary injunction against SO 3 has been issued by the courts.
Fresh all-time highs
THE average retail price of refined sugar in Metro Manila wet markets as of June 23 soared to a fresh record high of P83.79 per kg while its average price in supermarkets reached an all-time high of P74.07 per kg, based on SRA data.
Refined sugar sold in Metro Manila markets ranged from P65 per kg to P90 per kg.
The average retail price of raw sugar in Metro Manila wet markets is now at P64.50 per kg while its quotation in supermarkets averaged P60.22 per kg.
The average retail price of washed sugar in Metro Manila public markets is currently at P61.84 per kg while those sold in supermarkets is at P67.43 per kg.
The average wholesale price of refined sugar as of June 23 reached a new record high of P3,991.43 per 50-kg bag, 73.35 percent higher than last year’s P2,302.5, SRA data showed.
Also, the average wholesale price of raw sugar rose by more than half year-on-year to a record P2,846.15 per 50-kg bag.