Marcos approves importation of more sugar

by Kristina Maralit ManilaTimes.net

PRESIDENT Ferdinand Marcos Jr. has green-lighted the importation of more sugar ahead of the expected shortage of its local production in the coming months.

According to the Presidential Communications Office (PCO), Marcos gave the Sugar Regulatory Administration (SRA) approval to procure a maximum of 150,000 metric tons (MT) of the sweetener to add to the country's stockpile and further lower its market price. This volume could be lower and the "exact volume will be determined" once the exact amount of sugar supply is determined "which will come at the end of this month."

"We agreed to additional importation of sugar to stabilize the prices. The maximum amount will be 150,000 MT but probably less," the President was quoted as saying following his meeting with SRA officials, headed by Acting Administrator Pablo Luis Azcona and Board Member Ma. Mitzi Mangwang, representing the millers.

Executive Secretary Lucas Bersamin, Presidential Legal Counsel Juan Ponce Enrile and SRA Board Secretary Rodney Rubrica were also in attendance.

The president further stated that the government is opening the importation of sugar "to all traders." According to SRA forecast inventory, the country will have a negative ending stock of 552,835 MT by the end of August 2023, the end of the milling season, and importation of another 100,000 MT to 150,000 MT of sugar is necessary to avert a shortfall.

As of May 7, 2023, the country has sufficient supply of raw sugar with a beginning stock of 160,000 MT. However, an additional 100,000 to 150,000 MT of sugar would still be needed to be imported within the year as the expected local production of 2.4MMT, as well as the 440,000 MT allowed to be imported under Sugar Order 6 and the 64,050 MT under the Minimum Access Volume (MAV) mechanism will not be able to cover the 3.1MMT demand.

Apart from the approved importation of sugar, Marcos also approved the moving of the start of the milling season from August to September this year as this is deemed "important for the corresponding increase in production by approximately 10 percent."

Opening the milling season in September will improve raw sugar recovery because it will minimize the milling of young canes.

The president likewise directed the SRA to expedite block farming initiatives -- a system by which small farm lots are consolidated into at least a 30 hectare-block farm -- for more production yield.

Currently, there are 21 block farms in the country averaging at least 40 hectares each.

Once organized into block farms, farmers are entitled to financial and mechanization support for increased production.

"Consolidation is an important part of agro-industrial production. We're looking at increasing the budget for block farming to accelerate the process of organizing the block farms," Marcos said. g