The government is planning to restrict sugar imports to 200,000 metric tonnes (MT) in 2024, following substantial shipments this year. Agriculture Secretary Francisco Laurel, speaking during a confirmation hearing with the Commission on Appointments, indicated that the Department of Agriculture aligns with the initial assessment of the Sugar Regulatory Administration (SRA). Laurel stated that, based on SRA estimates and discussions over the past two weeks, the country does not anticipate the need for a significant sugar import in the coming year, reported Manila Standard.
The SRA affirmed that carry-over stocks from the 2022 importation would be sufficient to meet local demand. The assessment suggests that the importation requirement for 2024 should be around 200,000 MT, assuming no adverse weather conditions. The current stock of refined sugar is reported to be about 200 percent higher than last year, providing nearly two months’ worth of inventory. Imports of 440,000 MT under Sugar Order (SO) 6 have contributed to this surplus, with withdrawals reaching 200,000 MT, leaving a balance of 220,000 MT.
Apart from this, about 30,000 MT from the 150,000 MT of sugar imported under SO 7 has arrived, leaving a balance of 120,000 MT that was intended for shipment in time for peak demand during the holidays.
The pre-milling estimate from the SRA anticipates sugar output reaching 1.84 million MT in crop year (CY) 2023 to 2024, reflecting a 2.7 percent increase from CY 2022 to 2023. An additional 50,000 MT of raw sugar output is expected if El Niño conditions are not as severe as predicted. However, a worsening dry spell may result in a 10 to 15 percent decline in the harvest. The retail price of sugar has stabilized at around P85 per kilogram, down from an average of P110/kg, with farm gate prices estimated at P60/kg or P3,000 per 50-kg bag.
