Sugar import cap questioned
David John Thaddeus Alba —CARLA GOMEZ
BACOLOD CITY — Three groups of sugar producers are asking the Sugar Regulatory Administration (SRA) to explain how it arrived at the proposed importation figure of 150,000 metric tons of sugar.
The National Federation of Sugarcane Planters (NFSP), Confederation of Sugarcane Producers Associations (Confed), and Panay Federation of Sugarcane Farmers (Panayfed) sought clarification on the importation numbers in a letter to SRA Acting Administrator David John Thaddeus Alba on Aug. 31.
The importation of 150,000 MT of sugar was contained in the draft Sugar Order No. 2 which the SRA said it would issue within the month.
“It is not clear how and why SRA arrived at the figure of 150,000 MT. We would appreciate being advised on the figures used as reference so that we can reconcile our own data and come up with a consistent rationale for the volumes involved as well as the delivery schedules proposed,” the letter read.
The letter was signed by NFSP’s Enrique Rojas, Confed’s Raymond Montinola and Panayfed’s Danilo Abelita, and was in response to Alba’s request for all planters’ federations, sugar millers and other stakeholders to comment on the draft order.
The three planters’ federations, together with the Philippine Sugar Millers Association which has also recommended the importation of 300,000 MT of sugar, account for the majority of the country’s sugar production.
Not enough
Based on their analysis of the supply and demand situation submitted by the SRA itself, the producers earlier recommended a total importation of 300,000 MT, divided into two importations of 150,000 MT to arrive immediately, followed by another 150,000 MT to meet domestic requirements until the peak of milling in November, the three groups said.
They warned that sugar production at the start of the new milling season will not be enough to meet the expected demand from August to October. Thus, a buffer stock is needed to meet domestic sugar requirements until milling peaks in November.
The producers emphasized the need to urgently address the current supply shortage, considering it has already forced some beverage manufacturers and food processors to close their operations, resulting in loss of jobs and income to many employees of the affected companies.
They said the SRA should monitor market conditions to determine the appropriate time and calibrate the arrival of any additional importation.
The producers also proposed to the SRA that, instead of “C” (reserve) sugar classification, the proposed importation should be directly classified as “B” (domestic market) sugar to minimize the time it will take for the imports to reach the intended markets.
“In order to assist producers who are suffering from drastic increases in production costs and low purity of cane due to early milling, we request SRA to consider allowing the participation of eligible producers’ groups in the proposed importation, in volumes proportionate to their production,” the producers group said.
