The Sugar Regulatory Administration (SRA) in Philippines stated that it will undertake a limited voluntary purchasing program for raw sugar to support soft millgate prices.
According to draft sugar order (SO) by SRA, the target for this voluntary limited-volume purchase of domestically produced raw sugar is to ensure a stable and reasonable farmgate price while maintaining the prevailing level of retail price, reported Business World.
SRA noted that the millgate price for raw sugar had declined to as little as P2,400 per 50-kilogram bag. The regulator said the purchasing program will acquire a maximum of 300,000 metric tons (MT).
Raw sugar acquired through the program will be reclassified as “C” or reserve sugar, and will be kept out of market circulation.
Eligible participants in the program include farmers, farmer’s groups, cooperatives, associations, sugar millers, refiners, manufacturers, and beverage producers.
Those who participate in the voluntary purchase program will also have the opportunity to engage in future import rounds.
SRA Administrator Pablo Luis S. Azcona expressed hope that the draft sugar order would be signed within the month, although the maximum volume could be subject to adjustment.
The Sugar Council mentioned that the proposed Sugar Order will shield farms from price fluctuations during the peak harvest season.
The Council further added that Azcona has emphasized that “there will be no imports until May or June, when the harvest is complete.”
The Department of Agriculture (DA) has said that it will delay any sugar import plans until mid-year, as domestic supply is expected to be adequate.
It added that the move should reduce the volume of available sugar in the domestic market during the harvest months “thus helping stabilize millgate sugar prices.
