The federal government’s refined sugar importation program could not have the ability to mood the spike within the worth of the sweetener, in response to a member of the Sugar Regulatory Administration (SRA) board.
SRA board member Roland Beltran, who represents the milling sector, famous that solely industrial customers and bottlers will have the ability to avail of the importation program, which requires the acquisition of 200,000 metric tons (MT).
Beltran mentioned the importation program ought to have been opened to all eligible importers and finish customers.
Throughout the deliberation on Sugar Order (SO) 3, he mentioned he voted for the measure, however expressed reservations in regards to the protection of the import program.
He mentioned limiting this system to industrial customers and bottlers was “discriminatory, not useful to the shoppers and should violate the equal safety clause.”
“The import program won’t be useful to end-users significantly shoppers since it’s centered on the economic customers. They actually wish to handle the excessive costs [of sugar in the domestic market] however apparently SO 3 zeroed-in in favor of the industrials,” Beltran advised the BusinessMirror in an interview.
“If we needed to deal with the excessive costs available in the market, significantly in locations the place odd folks get their sugar, logic dictates that the importation program ought to have been open to all.”
SRA Administrator Hermenegildo Serafica issued on Wednesday a memorandum round which introduced that SO 3 is “quickly held in abeyance till additional discover” following the Regional Trial Courtroom of Negros Occidental’s issuance of a brief restraining order (TRO) in opposition to it. (Associated story: https://businessmirror.com.ph/2022/02/15/court-stops-sras-importation-of-200000-mt-of-refined-sugar/)
Philippine Institute for Improvement Research (PIDS) senior analysis fellow Roehlano M. Briones mentioned the issuance of the TRO “creates further uncertainty” within the sugar market as this might result in “potential hypothesis,” which can have an effect on the motion of shares and costs.
“Let’s say some gamers are already conditioned that 200,000 MT will enter the nation after which instantly it’s stopped. Some folks may maintain on to their shares since imports should not forthcoming. That may not result in the easing of native costs,” Briones advised the BusinessMirror.
He additionally mentioned it might have been higher if the federal government’s sugar importation program was “distributed brazenly” to all events.
“This system might have been auction-based or market-based whereby the very best bidder wins. Let the successful bidder promote to no matter market he needs to promote it. That means it relaxes the worth stress and on the similar time it is going to give the federal government further earnings.”
The SRA’s earlier sugar importation applications had been opened to all sugar business stakeholders, together with sugar producers and shoppers.
Hunted for remark, Serafica mentioned he “can’t say for sure” how the TRO issued in opposition to SO 3 “will affect the sugar market.”
“However, SRA will proceed to carry out its mandate to take care of a balanced relation between manufacturing and requirement of sugar in the direction of stabilized costs that’s cheap to producers and truthful to shoppers,” Serafica advised the BusinessMirror through SMS.
Trade sources advised the BusinessMirror that the TRO issued in opposition to SO 3 might trigger native sugar costs to go up.
Newest SRA information confirmed that uncooked sugar manufacturing as of February 6 rose by 2.99 p.c to 1.018 million MT from final 12 months’s 989,204 MT. Uncooked sugar demand in the course of the interval expanded by 13.31 p.c to 832,051 MT from 734,286 MT.
SRA information additionally confirmed that refined sugar output as of February 6 reached 353,779.10 MT, 41.79 p.c greater than the 249,515.8 MT recorded a 12 months in the past. Nevertheless, complete refined sugar provide is down by 6.61 p.c year-on-year to 585,934.9 MT.
The nation’s complete refined sugar demand rose by 7.15 p.c to 444,231.8 MT from 414,582.65 MT.
SRA’s newest worth monitoring experiences confirmed that the mill-site worth of uncooked sugar as of January 30 is at P1,892.32 per 50-kilogram bag.
The wholesale worth of uncooked sugar as of February 2 is now at P2,025 per 50-kilogram bag whereas the common wholesale worth of refined sugar has reached a record-high of P3,037.50 per 50-kilogram bag.
The retail worth of uncooked sugar in Metro Manila presently ranges from P45 per kilogram (kg) to P58 per kg whereas refined sugar is being bought from P52 per kg to P75 per kg, in response to SRA information.