Sugar Council questions importation
The Sugar Council has expressed confusion over the government’s plan to import sugar despite exporting raw sugar to the US. The council questioned why the country is exporting 24,700 MT of raw sugar, which is in short supply, and replacing it with 61,750 MT of refined sugar, which is already in excess. The government plans to import 200,000 MT of refined sugar by September, citing ample stocks and price stability. However, farmers are worried about mill gate prices and seek clarification on the matter.
“Export, them Import?”
This is the reaction of the Sugar Council to the sugar importation planned by the government. On July 4th, sugar farmers federations received communication from SRA Administrator Pablo Azcona dated July 1, 2024, with attachment on a proposed sugar order titled, “Subject: Export of Raw Sugar in Fulfillment of the U.S. Sugar Quota for the Year 2024 to Avail of Allocation for Future Import Program”.
The federations were asked to comment on the proposed sugar order by July 8th, which the Sugar Council, an alliance of three sugar farmers federations, complied with. The council’s letter, addressed to Agriculture Secretary Francisco Tiu Laurel, Jr., and coursed through SRA Administrator Azcona, raised the mounting confusion of farmers as to why the country is exporting raw sugar to the U.S. when it is also planning to import.
The council sought clarification on the matter. However, before a response from the DA and the SRA could be had, on July 10, Philstar Global published an online article titled, “Philippines to export 27,400MT raw sugar to the US soon” penned by Jasper Emmanuel Arcalas. The article shared that the Philippines’ U.S. sugar export quota has been left unserved since the crop year 2020-2021. At the start of the current crop year (2023-2024), SRA also did not set an export volume for the U.S., causing the reassignment of the Philippines allocation of 141,142MT.
The article went on to disclose, however, that in November 2023 SRA requested the quota to be reinstated “to relieve the raw market of supply”. Thus, an allocation of 24,700MT was granted. Still, farmers continue to be puzzled as to why there is a need to import even as an export sugar order is being prepared.
It will be recalled that on June 27 the same national newspaper posted on its social media account the following, “Agriculture Secretary Francisco Tiu Laurel Jr. said the government is set to approve the importation of 200,000 metric tons of refined sugar that would arrive by September to ensure that the country has ample stocks and prevent any price spikes in the market.” Thus, farmers have reason to be puzzled.
Why export and then import? Why export 24,700 MT raw – which we are short of – and replace it with 61,750 MT refined (at a 1:2.5 ratio) – of which we have too much?
It would do well for the DA and the SRA to explain the situation to the common farmer who is understandably worried about mill gate prices when sugarcane harvest begins later this year. (TDE)
Source Link : https://www.sunstar.com.ph/baguio/sugar-council-questions-importation
