• The Philippine government plans to import 200,000 metric tons of refined sugar by September to stabilize retail prices and ensure sufficient domestic supply
• Agriculture Secretary Francisco Tiu Laurel, Jr. said the decision to import has been under consideration for six months
• The DA and the Sugar Regulatory Administration will finalize importation details in early July
The Philippine government plans to import 200,000 metric tons (MT) of refined sugar by September to stabilize retail prices and ensure sufficient domestic supply, according to the Department of Agriculture (DA).
Agriculture Secretary Francisco Tiu Laurel Jr. announced on June 26 that the decision to import sugar has been under consideration for six months. The importation is intended to fill the supply gap before the local harvest and refining processes begin.
“That is the deficit we are seeing. We expect current stocks to decline by August or September, so we need to plug the supply gap by importing 200,000 metric tons of refined sugar by September or October,” Tiu Laurel said.
The DA and the Sugar Regulatory Administration (SRA) will finalize the details in early July.
The SRA clarified in a statement that any importation plan would be activated if the buffer stock falls below three months’ supply, referred to as the “trigger point.”
The importation will be governed by Sugar Order No. 2, which allows traders to purchase local raw sugar at premium prices in exchange for guaranteed allocations in future importation rounds. This order aims to ensure a stable supply while maintaining fair farm-gate and retail prices, according to SRA administrator Pablo Luis Azcona.
This order aims to ensure a stable supply while maintaining fair farm-gate and retail prices. The United Sugar Producers Federation (Unifed) supports the planned importation, noting that the El Niño phenomenon has delayed the harvest season.
“This will fill in the shortage before harvest season starts in September. Harvest this coming crop year will be delayed due to El Niño and when we were consulted about this matter, we approved the proposal,” Unifed president Manuel Lamata said.
The National Federation of Sugarcane Planters stated that importing sugar should be a last resort and only when absolutely necessary.
The Sugar Council, a coalition of sugarcane producers, acknowledged the need for importation to maintain price stability during the off-milling season.
“While the Sugar Council admits that sugar importation is needed to maintain the stability of retail prices during off-milling season, a calibrated and transparent importation program must be in place to ensure that locally produced sugar is not prejudiced,” they said in a statement.
Data from the SRA indicated that local raw sugar production totaled 1.92 million MT as of June 9, a 7.04 percent increase from the previous year’s 1.79 million MT. However, demand for raw sugar dropped by 2.98 percent to 1.49 million MT from 1.54 million MT in the same period.
As of June 26, refined sugar prices in Metro Manila range from P74 to P92 per kilo, according to DA. This marks a decrease from the previous year’s prices, which ranged from P86 to P110 per kilo.
