February 9, 2024
ChiniMandi | https://www.chinimandi.com/philippines-traders-importers-to-buy-local-ra...
Manila: Sugar traders and importers are expressing a interest in purchasing 300,000 metric tons of locally produced raw sugar at a premium price, with the expectation of securing a priority allocation in future government import programs, reported Philstar.
The initiative aims to address the declining mill-site prices of raw sugar, which have persistently fallen below favorable levels for sugarcane planters, as outlined in a draft Sugar Order (SO).
The Sugar Regulatory Administration (SRA) board is presently reviewing the draft SO in consultation with industry stakeholders, according to sources familiar with the matter. The document states that sugar traders and importers have signaled their intention to purchase a “limited” volume of locally produced raw sugar at a premium.
The SRA, as per the document, views it as “necessary” to implement “responsive” and “pre-emptive” measures to counter the downward trend in raw sugar prices. This involves traders and importers buying raw sugar at a higher prevailing price to “qualify for a possible preference in the availment of allocation in the event of an importation program.”
The draft document explains that the purpose of this Limited Volume Purchase is to enhance the farmgate prices of locally produced sugar to a more stable level, ensuring optimal retail prices. Participating sugar traders and importers in the procurement program will receive priority in the next import program if the government decides to initiate one based on market conditions.
The SRA explicitly states that there is currently no sugar importation program. Any privileges granted to eligible participants under this Order will apply to future import programs, contingent on the need to import sugar arising, according to the draft order.
In response to the import provision in the draft SO, the Sugar Council has urged the SRA to declare that it will not open an import program for the entire 2024. The group questions the inclusion of the phrase “if and when the need for sugar importation arises,” raising concerns about the intention behind mentioning it if there is no plan to import.
The Sugar Council also seeks clarification on the status of the P5 billion sugar procurement program planned by the SRA in collaboration with the Philippine International Trading Corp. The group suggests that the government should stick to and expedite its procurement plan, urging reconsideration and abandonment of the proposed program in the draft SO.
SRA Administrator Pablo Luis Azcona said that the government’s raw sugar procurement program remains under consideration, with guidelines still in the drafting process. Azcona noted that sugar industry stakeholders were briefed on the two proposed procurement programs by the SRA during a January meeting, attended by members of the Sugar Council.