Confed rejects DA’s sugar import plans
The Confederation of Sugarcane Producers’ Associations (Confed) opposes the Department of Agriculture’s plan to import 200,000 metric tons of refined sugar, citing sufficient inventory until the next milling season. Confed President Aurelio Gerardo Valderrama highlighted existing stocks of 436,229 MT of raw sugar and 492,985 MT of refined sugar. Agriculture Secretary Francisco Tiu Laurel Jr announced the importation to prevent price surges, with discussions scheduled with the Sugar Regulatory Administration on July 10 or 11.
THE Confederation of Sugarcane Producers’ Associations (Confed) is opposing the Department of Agriculture’s (DA) plan to import sugar, as the current inventory of the commodity can last without importation until the start of the next milling season.
Confed President Aurelio Gerardo Valderrama said they wrote a letter to Agriculture Secretary Francisco Tiu Laurel Jr, expressing concern about the government’s plan to import 200,000 metric tons of refined sugar in September. Citing data from the Sugar Regulatory Administration (SRA), Valderrama said that the country still had an adequate inventory of both raw and refined sugar at 436,229 MT and 492,985 MT, respectively.
Estimates from the SRA show that the country’s monthly sugar demand is between 180,000 MT and 240,000 MT.
“Current rates of withdrawal indicate that local inventory can last without importation until the start of the milling season later this year,” Valderrama said in a statement over the weekend.
Last week, Tiu Laurel made the announcement to import refined sugar to fill a supply gap and prevent a surge in prices.
He added that the decision to import sugar was made because the DA expects local stocks to decline by August and September.
The group noted that the SRA had not made an announcement yet on the start of milling for the 2024-2025 crop year, and no crop estimates have been made so far, with the new crop year being impacted by the El Niño phenomenon.
“Consistent with our 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,” Valderrama said.
He also urged the SRA to begin consulting with the industry to discuss sugar policy for crop year 2024-2025.
Tiu Laurel, meanwhile, said the DA was scheduled to discuss the plan with the SRA on July 10 or 11. The meeting will determine if the importation plan will proceed.
Source Link: https://www.manilatimes.net/2024/07/01/business/top-business/confed-rejects-das-sugar-import-plans/1954273
