PH oks importation of up to 200,000MT refined sugar

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• Of the 200,000 metric tons for importation, 100,000 metric tons will be standard grade refined sugar and the rest bottlers’ grade refined sugar. Photo by John Cutting on Unsplash
  • Up to 200,000 metric tons of refined sugar may be imported by the Philippines for crop year 2021-2022
  • The importation aims to moderate the high price of sugar
  • Typhoon Odette made landfall in sugar regions Negros, Panay and Eastern Visayas in December last year, damaging sugarcane crops and sugar stocks
  • Of the 200,000 metric tons for importation, 100,000 metric tons will be standard grade refined sugar and the rest bottlers’ grade refined sugar

Up to 200,000 metric tons of refined of sugar may be imported for crop year 2021-2022 to “temper the current level of high local sugar prices”, the Sugar Regulatory Administration (SRA) said in a recent order.

Of the total, 100,000 metric tons is standard grade refined sugar and the rest bottlers’ grade refined sugar, according to Sugar Order No. 3 dated February 2 but released February 4

The record high wholesale and retail prices of raw sugar and refined sugar, SRA said, was a consequence of destruction caused by typhoon Odette, which hit the country in December last year. The strongest typhoon to hit the Philippines in 2021, Odette made landfall in sugar regions Negros, Panay and Eastern Visayas, damaging sugarcane crops, sugar stocks in warehouses and facilities and equipment of sugar mills and refineries in key sugar milling districts, SRA said.

As result, the wholesale price of raw sugar in the National Capital Region is now P2,000 per 50-kilogram bag (LKg) and refined sugar P2,900 per Lkg, which SRA described as “historic highs”.  (1 Lkg = 50 kilograms bag of sugar.)

The retail price of raw sugar in certain public/wet markets has hit P48 a kilo while the retail price of refined sugar ranges from P57 to P60 a kilo, higher than the suggested retail prices for raw sugar and refined sugar.

The havoc caused by Odette cut raw sugar production estimate for crop year 2021 to 2022 to 2.072 million MT from 2.099 million MT, SRA said. At the same time, the sugar refineries association revised its sugar production forecast to 16.748 Lkg from the initial pre-Odette estimate of 17.572 million Lkg.

The import program is “open and voluntary” to industrial users of refined sugar registered with the SRA as an international trader in good standing.

Industrial users are defined by SRA as “confectionaries, biscuits, bread, candies, milk, juice, and food and beverage manufacturers” using refined sugar in the manufacture of products in the country and sale in the domestic market.

An industrial user may apply to import up to 5,000 MT of standard refined sugar and up to 10,000 MT of bottlers’ grade refined sugar, according to SRA.

An industrial user may use the services of an SRA-registered international trader.

The SRA offices in Quezon City or in Bacolod City will accept import applications from Feb. 7 to Feb. 11, and on Feb. 14.

For industrial users importing standard refined sugar, 25% of the volume should arrive no sooner than March 1, 2022 and the remaining 75 percent no sooner than May 1, 2022.

For those importing bottlers’ grade refined sugar, 75% of the volume should arrive no sooner than March 1, 2022 and the remaining 25% no sooner than May 1, 2022.

Industrial users or international sugar traders must submit a written request to the SRA Board for reclassification of the “C” sugar (for reserves) to “B” sugar (for domestic consumption), indicating the volume to be reclassified and the address of the SRA-registered warehouse where the “C” sugar is stored.

“Only after the reclassification to “B” sugar can the imported sugar be released to the domestic market,” the SRA said.