The government is considering the importation of sugar between July and August when buffer stock is predicted to fall below the ideal level of three months worth of supply.
Pablo Azcona, SRA administrator, told reporters in a virtual press conference yesterday the plan was raised by the Private Sector Advisory Council and agri sector leaders during a meeting last week.
If needed, the government is eyeing to bring in 185,000 to 200,000 metric tons (MT) of refined sugar.
Azcona said importation will prevent a drop in supply level that will cause price spikes. This will avoid a repeat of what happened in 2022 when refined sugar prices reached as high as P130 per kg.
Being off-milling season, July until early September isthe most ideal period to allow imports.
Azcona said the three month- buffer stock takes into account the fact that it takes about a month to ship sugar from Thailand and other suppliers. This timeframe includes processes and inspections from the Bureau of Customs.
Azcona said as of May 5, sugar production has reached 1.918 million MT for the current crop year, an increase of 6.6 percent from the previous crop year’s 1.799 million MT.
SRA added the country has a current available stock of 568,734 MT worth of sugar. Monthly demand is at around 200,000 MT.
Manuel Lamata, United Federation of Sugar Producers president, said imports should only serve the needs of the country during the off-milling season but agreed discussions on the plan as early as now would “clear out importation procedures to avoid issues. “
