There is no malice in asking the Sugar Regulatory Administration (SRA) for an explanation why sugar prices have been on a downward trend, the Sugar Council and the National Congress of Unions in the Sugar Industry of the Philippines (Nacusip) said.
“It is incumbent upon us to voice out the call of our members for an explanation,” the Sugar Council and Nacusip said in a joint statement.
“As the government regulating agency on sugar, the SRA is mandated to answer truthfully the concerns and issues raised by industry stakeholders. To ask for an explanation, therefore, should not be deemed malicious,” they said.
Earlier, the sugar groups issued a statement, citing official SRA data as of October 20, that despite a relatively large carryover stock from last year, SRA brought in 135,833 metric tons (MT) of imported refined sugar, with the balance of 104,167 MT still to come from the 240,000 MT importation authorized by Sugar Order No. 5.
The same SRA report showed that sugar withdrawals dropped by 18.38 percent for raw, and by 20.18 percent for refined, compared to the same period last crop year.
The decrease in demand has caused “a steady drop in prices,” the Sugar Council and Nacusip said, adding that for SRA to say that it is “unexplainable” is unacceptable.
“Instead, what could be malicious are the following: First, selective data presentation without disclosing the entire picture. Second, declaring there would be no more importation without mentioning imported sugar has already arrived, and more might be coming. Third, comparing essentially different circumstances without regard to historical perspective. And fourth, withholding vital, timely information from sugar industry stakeholders,” the two groups added.
Last week, SRA countered that the sugar groups’ claims of an oversupply of sugar are “laced with malice.”
“Our production of sugar is down by 61 percent, and we have prepared for this with the proper buffer supply, and as to their claims of oversupply of both raw and refined sugar, we are currently 35 to 37 percent below the levels recorded last year,” SRA Administrator Azcona stated.
On the other hand, the Sugar Council and Nacusip explained that the comparison of industry data as of October 20, to that of the same period last crop year is misleading.
Although production is substantially lower compared to the same period last crop year, the total physical stocks of raw and refined sugar for the same period in Crop Year 2023-2024 were exceptionally high.
“SRA reports show that total physical stocks of raw sugar were 215,686 MT, while that of refined sugar was 516,128 MT, mostly carryover stocks from the unprecedented importation of 740,000 MT of refined sugar in CY 2022-2023. That is why refined sugar stock, as of October 20, which is 323,983 MT, is so much lower,” they cited./WDJ