• GILBERT P. BAYORAN
The importation of 150,000 metric tons of refined sugar, based on Sugar Order No. 07 issued by the Sugar Regulatory Administration, in anticipation of further reduction of sugar production volume for Crop Year 2022-2023, due to the early start and end of the milling season, was approved on July 6 by President Ferdinand Marcos Jr.
In the issuance of SO7, Marcos, also the concurrent Agriculture Secretary, said the 3rd Sugar Import Program for crop year 2022-2023 and 2nd Import Program for Calendar Year 2023 aims to ensure sufficient actual supply of sugar for domestic consumption, as well as two months of buffer stock.
Despite the relatively stable supply of sugar noted at the start of the milling season for Crop Year 2022-2023, the SRA, in the exercise of its regulatory authority, took into consideration the production losses due to the early start of milling in August, the unfavorable weather conditions and related factors, and the anticipated increase in demand for sugar due to the easing of restrictions. The first Sugar Order No. 06 was released to help stabilize the supply and prices for the Production Crop Year 2022-2023.
SO6 was approved on February this year, allowing the importation of 440,000MT of sugar.
Despite issuance of the SO6 import program, the further reduction of sugar production volume is forecast due to the early start and early end of the milling season, and in anticipation of the possible shortfall of supply, and to bridge the gap between the supply and demand, SRA said it finds imperative to open a second import program to address the demand for CY 2022 2023.
In a statement, the National Federation of Sugarcane Producers (NFSP) requested the SRA for a calibrated release of the additional volume of sugar.
According to SRA, the 150,000 MT additional importation is intended as buffer stock before all mills start their milling operations, NFSP president Enrique Rojas said.
Sugar mills in the country are presumably said to start producing sugar by September 1. Rojas, however said not all of them will start milling simultaneously.
Moreover, he stressed that it takes about two weeks for mill gate sugar to reach the shelves of most retails outlets and get into the tables of consumers.
Rojas also pointed out that there is a lag both in production volume and in the period of time that the sugar reaches the market.
We expect that SRA will be judicious enough to release the additional imported sugar in a calibrated manner, in such small volumes that will answer the gap in production, so that mill gate prices at the start of milling will not be adversely affected by the latest sugar importation, he said.*
