Adequate supply, Confed: No basis to import sugar, supply enough until next milling season 

Posted by watchmen
July 1, 2024
Posted in HEADLINE

By JEN BAYLON

The Confederation of Sugarcane Producers Association (Confed) has expressed surprise and concern over the government’s plan to import 200,000 metric tons (MT) of refined sugar in September, citing a lack of basis for the proposal.

In his letter to Agriculture Secretary Francisco Tiu Laurel Jr., Confed president Aurelio Gerardo Valderrama, Jr. said a report from the Sugar Regulatory Administration (SRA) dated June 9, shows there are adequate sugar inventory levels, both raw and refined, to last until the start of the milling season later this year.

According to the data, there are 436,229 MT of raw sugar and 492,985 MT of refined sugar available.

Valderrama said the planned importation has no basis, and the government allegedly did not conduct consultations with sugar stakeholders.

“We urge the SRA to begin consulting with the industry to discuss sugar policy,” he added.

Valderrama also emphasized that the plan to import sugar should be “data-based, calibrated, totally transparent, and fair.”

“[It should be] done in consultation with industry stakeholders and, therefore, immune from speculation and manipulation,” he added.

Valderrama said no sugar crop estimates have been made for the upcoming crop year.

He added that the SRA has yet to announce the start of the milling season.

Confed is seeking clarification on the government’s importation plan, pushing for a more transparent and collaborative approach to sugar policy-making.

Earlier, the National Federation of Sugarcane Planters (NFSP) also expressed concerns about the importation plan, stating that the government should only import sugar when it is “absolutely necessary.”

NFSP president Enrique Rojas said the importation should be the government’s last resort to ensure stable prices of the commodity.

Last week, Laurel said the proposed importation of sugar intends to cover the supply gap before the milling season starts in October.

Laurel said the Department of Agriculture (DA) will be finalizing its sugar order, as supply is expected to drop in August.

He said that they have already consulted sugar stakeholders about the proposal.

The secretary added that the DA and SRA will meet in July to formalize the planned importation.

SRA Administrator Pablo Luis Azcona said the importation under Sugar Order No. 2 was already planned early this year, and was formally signed on March 8./JB, WDJ

 

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