THE Sugar Regulatory Administration (SRA) on Monday stood pat on its proposal to import sugar, sounding the alarm that the country may grapple with a shortage and high prices of the sweetener by the third quarter.
In a statement, SRA Administrator Hermenegildo R. Serafica explained that the country could face insufficient supply of sugar in the coming months as higher demand continues to outpace anemic production of the sweetener.
Serafica pointed out that the lower sugar output this crop year 2021-2022, caused by weather problems, has contributed to the spike in sugar prices that have soared “to record highs and continue to go higher every week.”
Serafica added that farmers are rushing to mill their canes to take advantage of the higher sugar prices, resulting in lesser tonnage and sugar content. This is also leading to an earlier end of the sugar milling season, he explained.
The SRA administrator maintained that the agency’s assessment of the country’s sugar supply situation is sound, based on historical and actual data.
“As such and coupled with the increase in demand for sugar due to the opening up of the economy, SRA has determined that there won’t be enough local production of sugar to meet our domestic consumption in the coming months, particularly June to August,” he said.
Serafica lashed out at the “detractors” of the SRA’s sugar importation programs, daring them to be accountable should a sugar shortage occur in the upcoming months.
“Can you imagine what will happen if there is no sugar available in the local market for households, for food retailers and manufacturers?” he asked.
“I would like to ask the detractors of importation: will they be accountable when we run out of sugar?” he added.
Without naming names, Serafica lamented that the issue on sugar importation has become “very political” because of the “stoking” of people, who only consider their “self interests.”
Not midnight deal
Serafica also dismissed claims that the proposed 350,000-metric ton (MT) sugar importation is a “midnight deal” or a “sweet deal,” claiming that the proposal was aimed at ensuring the country’s food security.
“There is no midnight deal or sweet deal, I will always do what I believe is right for the greater good. As the government agency regulating sugar supply, SRA has a mandate to ensure food security,” he said.
“What the detractors of importation have failed to consider is the issue on food security, in particular, the availability of supply and the issue on affordability of sugar,” he added.
The BusinessMirror broke the story last week that the country is mulling over importing 350,000 MT of sugar to plug the shortfall in domestic supply and arrest skyrocketing prices of the sweetener.
The SRA plans to open an importation program of 250,000 MT refined sugar and 100,000 MT raw sugar, based on a draft SRA Sugar Order obtained by this newspaper. (Related story: https://IH.com.ph/2022/04/07/phl-eyeing-importation-of-350k-mt-of-sugar/)
Last week, Sen. Imee R. Marcos slammed the proposed importation program by the SRA, calling it a “midnight deal.” Marcos urged Agriculture Secretary William D. Dar, who chairs the SRA board, not to sign the SO formalizing the importation.
The United Sugar Producers Federation also called the proposed sugar importation a “midnight deal” that would “greatly benefit the industrial users, particularly the bottling companies.”
Latest SRA data showed the average wholesale price of 50-kilogram bag raw sugar as of April 1 is now at P2,266.15, while wholesale price of refined sugar has reached an unprecedented P3,084.23 per 50-kilogram bag. SRA data also showed that the average retail price of raw sugar is now at P51.43 per kilogram while refined sugar is at P68.14 per kilogram.