Phl to import sugar

The Philippines is set to import up to 200,000 metric tons (MT) of sugar amid strong calls from local manufacturers following the surge in domestic sugar prices.

Agriculture Secretary Emmanuel Piñol said the Sugar Regulatory Administration (SRA) agreed to proceed with the importation by the private sector to curb the continuous price increase of the commodity.

“The SRA Board has already approved the resolution and imported sugar is expected to arrive the soonest possible time. Our shortage is between 160,000 to 200,000 MT so it will be within that range,” Piñol told reporters on Monday.

“The imported sugar will be classified into refined for industrials which is for bottlers and processors, for confectionaries and a certain volume for brown sugar to stabilize the price in the market,” he added.

The SRA is set to determine within the week the exact volume of imports and the possible country source.

“SRA is finishing the computation of the numbers right now. I have instructed them that I do not want to see an abnormal pricing of sugar in the market,” Piñol said.

The last time the Philippines imported sugar was in 2016 following the slump in production as an effect of the El Niño phenomenon.

During that time, 100,000 MT of sugar from Thailand were brought into the country.

Last week, the private sector sought the government’s approval to allow the importation of sugar, with the long term solution of allowing everyone to bring in sugar to assure stable supply, enhance free competition, and ensure a level playing field.

Mill gate sugar prices have jumped 44 percent to P1,802 per 50-kilogram bag as of May 20.

The wholesale prices of raw, washed and refined sugar also went up by more than 20 percent to P1,950 to P2,550 per 50-kg.

This is significantly higher than the landed price of imported sugar of about P1,300 per 50-kg bag.

Because of the shortage, the Philippines will fail to hit its target to produce 2.27 million MT this year. A sugar crop year starts every September and ends in August.

Latest data showed that local raw-sugar production declined by 13 percent to 1.99 million MT as of May 20.

Production of 50-kilogram bags fell to 39.8 million from 45.6 million the previous year.

Demand for the country’s raw-sugar was 12 percent higher at 1.78 million MT.

The declining output prompted the SRA to cut its exports to the world market and allocate more for domestic consumption.

The total sugarcanes milled decreased 10 percent to 22.76 million MT.