The government’s decision to allow sugar imports is a precautionary move to stabilise supply and prices taking note of the damaging effects of El Niño on the sugarcane crop, said the leaders from the industry, reports BusinessWorld.
Manuel R. Lamata, President of the United Sugar Producers Federation of the Philippines, noted that the prolonged dry conditions caused by El Niño have severely damaged the sugarcane crop.
The Sugar Regulatory Administration (SRA) identified the most severely affected regions as Batangas, Southern Negros, and Mindanao.
Data from the Philippine Statistics Authority revealed that sugarcane production plummeted by 42.3% year on year in the second quarter, reaching only 1.63 million metric tons (MMT), marking sugar as the hardest-hit crop.
In light of these developments, the SRA recently approved the importation of 240,000 metric tons (MT) of refined sugar through Sugar Order (SO) No. 5.
“Although sugar supply and prices remained relatively stable until the end of June, the limited availability of sugar and the ongoing impact of El Niño on sugar farming require swift and strategic government intervention to ensure a steady and reasonable supply and price,” the SRA stated.
As of July 21, the SRA reported that the refined sugar inventory stood at 396,339 MT, an 18% decrease compared to last year.
Mr. Lamata commented via Viber, stating that the import volume “seems appropriate to sustain us until the upcoming harvest season on September 15.”
SO 5 is available to importers who previously participated in SOs 2 and 3 and are Licensed SRA International Sugar Traders in good standing.
Mr Lamata also indicated that the sugarcane harvest for the upcoming crop year might face delays due to El Niño.
The Philippine Atmospheric, Geophysical and Astronomical Services Administration (PAGASA) announced the onset of the El Niño weather event in June 2023, which brought about below-normal rainfall, dry spells, and droughts.
While PAGASA declared the end of El Niño in early June 2024, dry conditions are expected to persist.
Adrian H. Halili said that the US Department of Agriculture forecasts that Philippine raw sugar production will remain flat at 1.85 million MT this year due to the lingering effects of El Niño.
