Manila : There is a stir among sugar farmers in the Philippines after the national government announced a plan to export raw sugar to the US and import refined sugar, according to Sunstar. On July 4th, the Sugar Regulatory Administration (SRA) Administrator Pablo Azcona communicated with sugar farmers federations, detailing a proposed sugar order titled, “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 communication, dated July 1, 2024, sparked reactions from the Sugar Council, an alliance of three sugar farmers federations.
The federations were requested to provide feedback on the proposed order by July 8th, which the Sugar Council complied with. In a letter addressed to Agriculture Secretary Francisco Tiu Laurel, Jr., and sent through SRA Administrator Azcona, the council expressed the confusion among farmers about why the country is exporting raw sugar to the U.S. while simultaneously planning to import sugar.
Seeking clarification, the council’s concerns were heightened by an article published on July 10 by Philstar Global titled, “Philippines to export 27,400MT raw sugar to the US soon,” written by Jasper Emmanuel Arcalas. The article highlighted that the Philippines’ U.S. sugar export quota has remained unfulfilled since the 2020-2021 crop year. At the start of the current crop year (2023-2024), the SRA did not set an export volume for the U.S., leading to the reassignment of the Philippines’ allocation of 141,142MT.
However, the article revealed that in November 2023, the SRA requested the reinstatement of the quota to alleviate the raw sugar market supply, resulting in an allocation of 24,700 MT. Despite this, farmers remain confused about the need to import sugar when an export order is being prepared. Adding to the confusion, on June 27, the same national newspaper posted on its social media account that Agriculture Secretary Francisco Tiu Laurel Jr. announced the government’s plan to approve the importation of 200,000 metric tons of refined sugar by September to ensure ample stock and prevent market price spikes.
The farmers’ confusion is understandable: why export 24,700 MT of raw sugar, which is in short supply, and replace it with 61,750 MT of refined sugar (at a 1:2.5 ratio), of which there is already a surplus? The Sugar Council insists that the Department of Agriculture (DA) and the SRA provide clear explanations to the farmers, who are justifiably worried about the impact on mill gate prices as the sugarcane harvest season approaches later this year.
