By Dominique Gabriel G. Bañaga
The Confederation of Sugar Producers Association Inc. (Confed) is requesting for the Sugar Regulatory Administration (SRA) to check on their sugar inventory amid speculation sugar withdrawals may be slowing and causing a drop in millgate prices.
Confed spokesperson Raymond Montinola said there has been a decline in demand for domestic sugar.
According to SRA records as of March 17, sugar stocks balances for domestic supply are up by 41 percent as compared to the 2017-2018 sugar crop year.
Montinola pointed out recent figures showed that sugar is at 1,092,763.10 metric tons, which he acknowledged is “an excess over [the] last crop year of 321,948.81 metric tons.”
Following an SRA inspection of First Farmers Holdings Corporation and Hawaiian Philippine Company warehouses that found them to be at maximum capacity, the Confed spokesperson noted, “These sugar mills are now clearing areas in their district for temporary storage units as they expect [a] slow withdrawal of sugar [over] the next weeks.”
While the sugar confederation noted a drop in millgate prices, composite prices have also seen a decline with currently composite prices at P1,450 per 50 kilogram bag, a drop from P1,500 two weeks ago.
“We suspect that sugar in the retail market might be coming [from] outside of the domestic production.” Montinola said. “This is why Confed recently requested SRA to consider holding out any sugar importation as there is enough sugar stock balances [at] the farmgate level as [evidenced] by their sugar report.”
“Should SRA find it necessary to bring in sugar it must be done in July,” he added. “Such sugar imports must be in refined form and will only be for the use of beverage companies.”
According to data from the Philippine Statistics Authority (PSA), despite 2018 fourth quarter agriculture numbers up, sugarcane production was in decline.
Based on their 4Q report, agriculture overall, which includes crops, livestock, poultry, and fisheries, saw an increase of 1.8 percent; crops, in particular, saw a marginal 0.25 percent increase.
However, the report noted sugarcane production saw a 2.22 percent drop, noting a reduction in areas harvested in the Western Visayas./DGB, WDJ