By JEN BAYLON

The Sugar Council (SC) seeks clarification from the Department of Agriculture and the Sugar Regulatory Administration (SRA) over the decision to export raw sugar to the United States, while it also intends to import refined sugar by September.

This comes after the SC received an order from SRA, stating that the Philippines is set to export 24,700 metric tons (MT) of raw sugar to the US to fulfill its sugar quota for 2024.

“Why export and then import? Why export 24,700 MT [of raw sugar] — which we are short of, and replace it with 61,750 MT [of refined sugar] — of which we have too much?” the SC, an alliance of three sugar farmers’ federations, said in a statement.

The SRA requested that the US sugar export quota be reinstated in November 2023 to relieve the raw supply market.

An allocation of 24,700 MT was granted.

However, the SC wondered why the proposed exportation is necessary when there is a surplus of refined sugar in the country.

The council said the move seems counterintuitive, given that the Philippines is also planning to import 200,000 MT of refined sugar by September to ensure ample stocks and prevent price spikes in the market.

The ratio between raw and refined sugar is 1:2.5, which means that for every one MT of raw sugar exported, two and a half MT of refined sugar will be imported.

Farmers continue to question why there is a need to import, even as the export order is being prepared.

The SC asked Agriculture Secretary Francisco Tiu Laurel, Jr. and SRA Administrator Pablo Azcona to clarify the exportation plan, as they are concerned about mill gate prices when sugarcane harvest begins later this year.

The country’s sugar industry has been facing challenges in recent years, including low prices and high production costs./JB, WDJ