THE Sugar Regulatory Administration (SRA) is already planning to import thousands of metric tons of sugar this year. According to the SRA, this is to consider both buffer stock and market demand trends.
Early in the morning, RJ has been roaming around one of the markets in Quezon City just to find affordable sugar.
He sells bread, or “pandesal,” for a living.
He said he already feels that the resurgence of high sugar prices in the market is back again.
“It’s also difficult in business because sugar, which is used as an ingredient, is getting smaller [amount] because of the extremely high sugar prices,” said RJ, buyer.
“(How much do you sell pandesal for?) Two pesos,” RJ stated.
Based on the price monitoring of the Department of Agriculture, the price of sugar in the market ranges from P64/kg to P100/kg.
But, in the Commonwealth market in QC, you can’t find other varieties of sugar amounting to P60/kg.
Hence, RJ continued to fear that the price of sugar might go up.
“It might get smaller [amount] and smaller [amount] as it keeps increasing [price],” RJ added.
According to the United Sugar Producers Federation of the Philippines (UNIFED) the Sugar Regulatory Administration (SRA) needs to import sugar.
UNIFED President Manuel Lamata explained that this is to ensure the adequacy of the sugar supply in the country.
He added that especially since the country is facing the El Niño phenomenon, many sugarcane crops were severely affected.
“With my experience in sugar farming, this is the first time I’ve experienced sugar cane not just drying up but actually dying. It’s dried up, it’s really dead. This is the first time I’ve seen it,” said Manuel Lamata, President, UNIFED.
Lamata emphasized the government should discuss how to import sugar for the upcoming cropping season.
“We’ve ended milling. The milling season is over, and we still have a lot of stocks. But from now until September, our nation will consume that. We are consuming 200,000 tons a month, so this is just right. Our sugar may be gone by August. It’s running out.”
“If they will not talk about the import now, the mill gate price will go up. Retail prices will also rise, retail will be hit because when you run out of sugar, prices will definitely go up,” Lamata added.
Gov’t eyes importing refined sugar this year—SRA
However, SRA said they are also studying the possible importation of sugar this year.
Although there is an increase in sugar production in 2024, it will not be enough because the demand for sugar is high throughout the year.
SRA Administrator Pablo Azcona clarified that the country still has more than half a million tons of sugar supplies.
“Right now, we have ample stock, the stock is stable, the price is stable, the retail is stable, so let’s just maintain it,” according to Pablo Azcona, Administrator, SRA.
“What we are preventing is a drop-in supply to a level where the market will become insecure. The retail market will be insecure, and retail consumers will experience a spike in prices,” he stated.
As a result, SRA could potentially import 185,000 to 200,000 metric tons of sugar but it is yet to be approved by President Bongbong Marcos.
This is to be targeted to arrive in the country from July to September, when the milling season has not yet started and local sugar farmers will not be affected.
“The government reportedly does not want a repeat of what happened in 2022 when the supply dropped, leading to a spike in sugar prices. However, sugar importation is not considered ‘urgent’ or rushed because it will only be pushed once the demand for sugar continues to rise and the country’s three-month supply also decreases.”
“We will need the sugar by, sometime or October we will need the sugar, which is the start of milling season, for refined sugar because if we start September 15 or October 1, the first refined sugar will probably take about 3 weeks to a month, before starting.”
“That’s what the government is looking for, our president said at that time there should be no shortage,” he stressed.
