The Philippine Sugar Millers’ Association Inc. (PSMA) declared on Friday that there is no requirement to import sugar for the year 2024. This decision, in agreement with the Sugar Regulatory Administration (SRA), is based on the observed deceleration in demand for the sweetener throughout the current year, a trend expected to persist, reported Manila Standard.
SRA Administrator Pablo Luis Azcona recently affirmed that considering the current demand statistics, there is no imperative to engage in sugar importation. Jesus Barrera, the executive director of PSMA, supported this stance, highlighting the sluggish pace of demand withdrawals throughout the season. As of December 3, 2023, SRA reports indicate a 23 percent decline in raw sugar withdrawals and a 10 percent reduction in refined sugar withdrawals compared to the previous year.
Barrera noted that the industry has already surpassed the zenith of the milling season, and with demand exhibiting weakness, physical inventories are accumulating steadily. He stated, “With such weak demand, our physical inventories are building up as we are adding more stocks every week. Yes, there is no need to add more sugar from imports. We welcome that statement from the SRA.”
Despite the peak harvest, farmgate prices have experienced a dip, ranging from P2,000 to P2,500 per bag, down from P3,000 per bag at the commencement of the crop year in August. With demand sluggish and prices on the decline, the PSMA emphasized that sugar producers see no compelling reason to introduce additional volume through imports; as such a move could exacerbate and prolong the current challenges faced by sugar farmers.
Earlier, Agriculture Secretary Francisco Laurel had announced a government-imposed limit of sugar importation at 200,000 metric tons due to ample supply. The SRA confirmed the existence of carry-over stocks from the 2022 importation, which are expected to adequately support local demand. Refined sugar stocks, according to the SRA, are approximately 200 percent higher than the previous year, providing nearly two months of inventory, supported by the government-sanctioned importation of 440,000 MT sugar under Sugar Order (SO) 6.
