Council calls for ‘calibrated’ sugar importation

MANILA, Philippines — A coalition of sugarcane producers said the Philippines may need to bring in imported sugar to keep prices of the sweetener in check before another planting season begins.

The Sugar Council—a coalition of Confederation of Sugar Producers Associations Inc., National Federation of Sugarcane Planters Inc., and Panay Federation of Sugarcane Farmers Inc.—said the country would need a “calibrated” importation program to ensure stable prices at the retail level.

“While the Sugar Council admits that sugar importation is needed to maintain the stability of retail prices during off-milling season, a calibrated and transparent importation program must be in place to ensure that locally produced sugar is not prejudiced,” they said in a statement on Wednesday.

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“This validates the call for active consultation with stakeholders, especially sugar farmers groups, to be conducted before any sugar importation order is issued,” it added.

The Sugar Council said earlier if the government planned to initiate any importation, it should be based on the Sugar Regulatory Administration’s timely analysis of market conditions and in consultation with industry players.

‘Abundant supply?’

The council issued the statement to refute the Philippine Sugar Millers Association (PSMA), which had said the country had an “abundant supply” of sugar this year that would last before the start of the next crop year in October.

Data from the SRA showed that the domestic production of raw sugar stood at 1.921 million metric tons (MT) as of May 12, exceeding the 1.799 million MT of raw sugar that had been produced in the last crop year.

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Despite an increase in local output, the groups said it was “equally disturbing” that withdrawals of imported refined sugar had shot up by 16 percent while withdrawals for locally refined sugar had decreased by 7.2 percent.

“These numbers suggest that imported refined sugar is being prioritized over locally refined sugar,” the Sugar Council said.

President Marcos previously backed a proposal to source 185,000 to 200,000 MT of sugar abroad to build the country’s buffer stock.

SRA Administrator Pablo Luis Azcona previously said an importation would be authorized if the country’s sugar stockpile would fall below three months’ worth of supply.