The Sugar Regulatory Administration (SRA) has allowed the importation of 150,000 metric tons (MT) of raw and refined sugar by the private sector as part of the government’s counter-inflation measure and to arrest the high retail prices of the sweetener in the market.
The SRA issued Sugar Order (SO) 2 on Monday authorizing the importation of sugar for the crop year 2018-2019.
The SRA argued that the present retail prices of sugar, both for raw and refined, are “high under normal conditions.”
Based on the SRA’s price monitoring report, the retail price of raw sugar as of end-September was at around P55 per kilogram while refined sugar was priced around P64 per kilogram.
“One of the objectives in the creation of SRA is to stabilize prices at a level reasonably profitable to the producers and fair to consumers,” the SRA said in the SO.
“The different sugar planters and millers associations have submitted to the Department of Agriculture or to SRA their respective proposals and position papers which, in general, support importation of sugar at this time,” the SRA added.
The approval of another round of sugar imports this year was in line with President Duterte’s directive, through Administrative Order 13, to “initiate import measures to immediately bring down prices of food products including sugar,” according to SRA.
Under the importation guidelines set by the SRA, the allocation of volume among registered international sugar traders is on a first-come, first-serve basis.
Every eligible importer could apply for SRA Clearance for Release of Imported Sugar and import at least 2,500 MT but not over 15,000 MT, according to SO 2.
The imported sugar would be classified as “C” or reserved sugar until it is reclassified into “B” sugar or for domestic utilization by the SRA board.
“Eligible importers shall write the SRA Board requesting for the reclassification of the ‘C’ sugar to ‘B’ sugar,” it said.
The SRA has scrapped the reclassification right system in the importation of sugar in the country and instead require importers to pay a clearance fee.
“The SRA shall collect a fee of thirty pesos (P30.00) per 50-kilo bag of raw sguar or thirty three pesos (P33.00) per 50-kilo bag of refined sugar allocated to every eligible trader,” it said.
In the previous round of sugar importation, traders are required to purchase certificate of reclassification rights (CORR) from planters to acquire volume allocation. The price of each CORR would depend on the negotiations between the trader and the holder of CORR.
The CORR system has received criticisms from government officials, including Agriculture Secretary Emmanuel F. Pinol, as it allegedly hikes the price of imported sugar as traders just pass on to their buyers the additional costs in purchasing the CORRs.
The SO 2 indicated that the imported sugar should arrive in the countryr no later than December 31. “Any volume that arrives after the said date shal be classified as ‘C’ Reserved Sugar indefinitely,” it added.
Furthermore, an eligible importer that fails to bring in any volume of or its entire allocation by December 31 would have its registration with SRA as an international sugar trader revoked or suspended as determined by the SRA board.
Interested traders to participate in he importation program could start applying at the SRA on October 8.
SRA board member Roland Beltran said that the entry of the additional 150,000 MT raw and refined sugar is a “preemptive importation to stabilize prices” and augment local supply.
“Our data shows tightness of sugar supply between the months of September to December. January is the peak season for the sugarcane industry,” Beltran said.
Image credits: Nonie Reyes