November 15, 2022
Business Mirror | https://bit.ly/3gaNM96
The Sugar Regulatory Administration (SRA) wants to reclassify 16,910 metric tons (MT) of sugar for export to stabilize prices and secure domestic supply.
In Memorandum Circular 5 dated November 7, the SRA has invited all stakeholders to comment on the sugar order on “reclassification of outstanding A or US export market sugar and D or world market sugar to B or domestic sugar under certain conditions.”
Under the draft of the said sugar order, there is an imperative to ensure the stable supply of sugar in the domestic market with the increase in the demand for the sweetener.
As of October 23, it said the actual raw physical sugar stock in the country has decreased by 24.98 percent compared to the physical sugar stock in the same period last crop year.
Also, the records of SRA indicate that significant volumes of “A” or US export market sugar and “D” or world market sugar have remained unshipped and could be utilized to alleviate the perceived tightness in domestic sugar balance.
According to SRA records, 11,432 MT for “A” sugar and 5,478 MT for “D” sugar have remained outstanding as per final report on raw sugar balances as of October 16.
The draft order also said the SRA received requests for conversion or reclassification of verified unshipped “A” and “D” sugars quedans to “B” sugar quedans considering that the reclassification of “A” and “D” sugar quedans was authorized in crop year 2014-2015 and crop year 2013-2014, respectively.
The SRA said it has consultation with the producers, namely, the planters and millers association/federations, on the conversion or reclassification of the foregoing verified “A” and “D” sugar quedans to “B” sugar quedans to augment the volume of sugar to be made available for domestic consumption, and help alleviate tightness in the domestic sugar supply for crop year 2022-2023.
Under the draft order, any verified unshipped “A” and “D” sugar quedans, regardless of status, issued for crop year 2020-2021 and previous crop years, are eligible for reclassification or conversion on a voluntary basis.