SRA opens imports of 200K MT sugar

The private sector can now proceed with the importation of sugar after the Sugar Regulatory Administration (SRA) released the guidelines on the 200,000 metric tons (MT) to be sourced outside the country.

In its latest sugar order, SRA administrator Hermenegildo Serafica said the import volume would be divided into 100,000 MT for bottlers’ grade refined sugar, 50,000 MT for standard grade refined sugar and 50,000 for raw sugar for domestic tolling and direct consumption.

“SRA had consultative meetings with the Department of Agriculture and the Department of Trade and Industry on the current situation in the production for raw and refined sugar, and the high prices thereof. They agreed SRA should adopt additional and responsive measures to ensure domestic supply and stabilize sugar prices,” he said.

Since the start of the current crop year, sugarcane tonnage and productivity were weak resulting to tonnage decreasing 34.75 percent and productivity by 2.67 percent.

Demand for both raw and refined sugar have also significantly increased with raw sugar withdrawals increasing by 2.58 percent and refined sugar withdrawals by 21.3 percent.

Lower production and high demand resulted in raw sugar stocks declining by 39 percent to 602,393 MT and refined sugar stocks falling to 288,363 MT.

Prices also continue to increase with sugar prices averaging P1,963 per 50-kilogram bag from P1,300 at the start of the current crop year in September 2017.

“The additional supply for the domestic market through importation will establish and maintain such balanced relation between production and requirement of sugar and such marketing conditions will ensure stabilized prices at a level reasonably profitable to the producers and fair to consumers,” Serafica said.

Meanwhile, the SRA Board will issue clearance for release to eligible sugar traders upon completion of reclassification certificates, application letter, bill of lading, commercial invoice, packing list, certificate of analysis from the country of origin, and proof of payment of bond and SRA fees.

The sugar to be imported will be classified as “C” or reserved sugar in order for it to be released from the Bureau of Customs. It will then be converted to “B” or domestic market sugar.

Traders can start applying for their import allocations starting June 18 until Aug. 31.

Sugar imported without SRA clearance and appropriate classification will not be released from the Bureau of Customs and may be imposed with forfeiture of bond, suspension and nonrenewal of registration as sugar trader.