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‘No malice in seeking answers’ – SRA told

The Sugar Council and National Congress of Unions in the Sugar Industry of the Philippines (NACUSIP) issued a joint statement, reiterating to the Sugar Regulatory Administration that there is no malice in asking for an explanation why sugar prices have been on a downward trend.

“As presidents of our respective organizations, it is incumbent upon us to voice out the call of our members for an explanation. As the government regulating agency on sugar, the SRA is mandated to answer truthfully the concerns and issues raised by industry stakeholders. To ask for an explanation, therefore, should not be deemed malicious,” the Sugar Council and NACUSIP said.

“Instead, what could be malicious are the selective data presentation, without disclosing the entire picture, declaration there would be no more importation, without mentioning imported sugar has already arrived, and more might be coming, comparing essentially different circumstances, without regard to historical perspective, as well as withholding vital, timely information from sugar industry stakeholders,” they claimed.

On November 18, the Sugar Council and NACUSIP issued a press statement, citing official SRA data as of the week ending October 20, 2024, that despite a relatively large carry over stock from last year, SRA brought in 135,833 metric tons of imported refined sugar, with the balance of 104,167 MT still to come, from the 240,000 MT importation authorized by Sugar Order No. 5, Series of 2023-2024 signed on August 8, 2024.

The same SRA report showed that sugar withdrawals dropped by 18.38 percent for raw and 20.18 percent for refined, compared to the same period last year. The decrease in demand has caused the steady drop in prices, following the law of supply and demand. Thus, for the SRA Administrator to say that it is “unexplainable” is unacceptable.

In response, SRA countered that the claims of an over-supply of sugar is “laced with malice.” “As of November 10, 2024, our production of sugar is down by 61 percent, and we have prepared for this with the proper buffer supply, and as to their claims of oversupply of both raw and refined sugar, we are currently 35-37 percent below the levels recorded last year,” SRA Administrator Azcona stated.

On the other hand, the Sugar Council and NACUSIP explained that the comparison of industry data as of week ending October 20, 2024 to that of the same period last crop year is misleading. Although production as of the week ending October 20, 2024 is substantially lower compared to the same period last crop year, the total physical stocks of raw and refined sugar for the same period in Crop Year 2023-2024 were exceptionally high.

“As of Week Ending October 22, 2023, SRA reports show that total physical stocks of raw sugar was 215,686 MT while that of refined sugar was 516,128 MT, mostly carryover stocks from the unprecedented importation of 740,000 mt refined sugar in CY 2022-2023. That is why refined sugar stock, as of the week ending October 20, 2024, which is 323,983 MT, is so much lower,” they cited.

It makes more sense to consider this year’s industry data in relation to historical data, instead of comparing it with CY 2023-2024 only, which was abnormally bloated by unprecedented importation. Historical SRA data show current year’s refined sugar physical stock (323,983 MT as of October 20, 2024) is actually higher than the same period in CY 2020-2021 (242,010 MT), CY 2021-2022 (133,950 MT), and CY 2022-2023 (171,769 MT). This supports the group’s claim of over-supply.

Moreover, the November 10, 2024 data cited by Adm. Azcona is not yet even available in the SRA website, as of this writing.

Finally, in answer to the repeated claim of Adm. Azcona that the Sugar Council did not attend the August 6 meeting, the group pointed out that they have always submitted their position on issues in writing so that there is a record. In fact, the group confirms, all letters and position papers submitted to the Sugar Board, the DA, and the SRA have been officially received, signed, and dated by them, and copies filed by the Sugar Council as proof of its sincerity to participate in all deliberations.

Physical presence at the meetings is not a guarantee that the Sugar Council will be heard, but the letter will always serve as proof. In fact, in an article titled, “No need for sugar imports, millers say,” published on May 28, 2024, in a national daily, the Philippine Sugar Millers Association (PSMA) expressed its opposition to the importation. PSMA then attended the August 6 meeting. Notwithstanding their opposition and physical presence, SRA still issued Sugar Order No. 5, Series of 2022-2023 on August 8.

If physical presence and submission of position papers are not enough, the groups say they are left with no choice but to go to the media. If the SRA Administrator thinks this is mere “noise,” then so be it. At least the constituents of the Sugar Council and NACUSIP are made aware and the public is correctly informed.*

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