DA’s import plans 'unconsulted', say sugar producers

A group of sugar producers said they were ‘surprised’ over the Department of Agriculture's (DA) mulling on importing refined sugar late this year to plug the gap before the harvesting and milling seasons in October.

The Confederation of Sugarcane Producers’ Associations (Confed) said on Friday they wrote a letter to Agriculture Secretary Francisco Tiu Laurel, Jr., expressing concern over the report of importing 200,000 metric tons (MT) of refined sugar by September.

“The report did not include any basis for such a plan. Neither was any stakeholder consultation conducted,” the group said in a statement.

Moreover, Confed President Aurelio Gerardo J. Valderrama Jr. cited in his letter to  Laurel that data from the Sugar Regulatory Administration (SRA) as of 9 June of this year indicates that the country has adequate sugar inventory levels of both raw and refined sugar at 436,229 MT and 492,985 MT, respectively.

He also pointed out that the current withdrawal rates show that local inventory can last without importation until the assumed start of milling in September.

As such, Valderrama said that the SRA has not yet announced the official start of milling for crop year (CY) 2024-2025, and no crop estimates have yet been made for the new CY, which has been affected by the El Niño phenomenon.

“With these concerns, CONFED is asking SRA to begin consulting with the industry to discuss sugar policy for the said crop year,” their statement read.

Valderrama further stressed that consistent with their frequently-stated position, “We reiterate that any sugar importation plan should be data-based, calibrated, totally transparent and fair, done in consultation with industry stakeholders, and therefore immune from speculation and manipulation.”  

Laurel said the DA and the SRA will discuss sugar imports in July.

According to him, the import volume will be the deficit during at least September or October, and the current sugar stocks are expected to decrease by August and September.