SUGAR PRODUCTION. Sugar Regulatory Administration (SRA) administrator Pablo Azcona says this year’s 1.918 million metric tons of sugar production is slightly higher than last year's 1.799 MT in a Zoom interview on Monday (May 13, 2024). The SRA is carefully studying sugar importation to prevent spiking retail prices in the market, considering that the current production is still short of the 2.2 million MT to 2.4 million MT demand in the country. (Screengrab)
MANILA – The Sugar Regulatory Administration (SRA) on Monday said it is studying the possible importation of sugar to prevent price surges in the retail market.
In a Zoom interview, SRA Administrator Pablo Azcona said they are considering both the buffer stock and market demand trend.
”Iyong pini-prevent po namin is iyong August 2022 situations where iyong stocks ng refined sugar natin is bumagsak to 27,000 MT (metric tons). Because of that, lumipad iyong retail, naging insecure (What we are preventing is the August 2022 situation wherein our refined sugar stocks dropped to 27,000 MT. Because of that, the retail price went up, it became insecure)," he said.
In the said year, the retail price of sugar reached as high as PHP130/kg.
The target import volume ranges from 185,000 metric tons (MT) to 200,000 metric tons per President Ferdinand R. Marcos Jr.'s instructions, Azcona said.
"Iyon po iyong always niyang sinasabi na (That's what he's always saying that) we should maintain a two-month buffer stock. When we need to import is actually, at the moment, still undergoing study," he said.
However, Azcona said there is a “trigger point” on stock levels prior to the activation of the import plan.
"Identified trigger point is about three-months supply so this will be based on the actual demand withdrawals," Azcona said, citing considerations on the timeline of shipping, inspection and release from Thailand and other countries.
Meanwhile, the SRA assured that there is ample sugar stock, and stable retail supply and prices.
On Friday, the prevailing price of refined sugar remained at PHP73/kg. to PHP100/kg. in Metro Manila.
As of May 5, the country has around 1.1 million MT of physical sugar stock, equivalent to 583,694.10 MT of physical refined stock and 568,734 MT of physical raw sugar stock.
In terms of production, SRA reported that it is at 1.918 million MT with a few mills still harvesting. This is higher than last year’s sugar production of 1.799 MT.
This is still short of the 2.2 million MT to 2.4 million MT demand in the country. (PNA)
