Sugar prices in the Philippines have declined for three consecutive weeks, raising concerns among stakeholders despite assurances from the Department of Agriculture (DA) and the Sugar Regulatory Administration (SRA) that there is no immediate need for additional imports, reported The Visayan Daily Star.
According to Agriculture Secretary Francisco Tiu Laurel Jr., the government will delay any decision on sugar importation until after the current harvest season ends in May next year. This decision, supported by SRA Administrator Pablo Luis Azcona, was intended to address fears of oversupply impacting prices.
In a joint statement, the Sugar Council and the National Congress of Unions in the Sugarcane Industry (NACUSIP) expressed concern over the continued price drop, which they say neither the DA nor the SRA has adequately explained.
The Sugar Council and NACUSIP reported that sugar prices at the Hawaiian Philippine Company (HPCO) fell from ₱2,980.88 per bag on October 20 to ₱2,815.99 per bag by November 10, marking a ₱164.89 decline in just three weeks. Other mills have seen even lower rates since November 3.
The groups attributed this trend to a noticeable decrease in demand, which they argue has led to an oversupply of both imported and locally produced sugar.
The Sugar Council highlighted the SRA Supply-Demand Situation Report from October 20, which revealed that only 135,833.20 metric tons (MT) of the authorized 240,000MT of imported refined sugar under Sugar Order No. 5 had entered the market. A balance of 104,167MT remains classified as C-sugar.
The report also showed significant drops in sugar withdrawals compared to last year, with raw sugar withdrawals down by 18.38% and refined sugar withdrawals by 20.18%. Furthermore, only 1,314MT of refined sugar was produced as of October 20, compared to 58,990MT during the same period last year—a 97% decrease.
The decline in domestic demand, along with imported sugar, is very challenging. Because of the convenience and availability of imported refined sugar, little incentive exists for local refineries to process raw sugar, thus further depressing mill gate prices.
“Patently, the downtrend in demand and price is in response to the arrival of imported sugar and substitutes,” the Sugar Council and NACUSIP said, lambasting the government’s “no importation” declaration as “the closing of stable doors after the horse has run out.”
The Sugar Council commented that feeble measures to stabilize prices left much vulnerability to the producers. It asked the SRA to not delay, to avoid further loss to local sugar industries.
Sugar prices continued their dismal beat downside movement. The stakeholders are demanding that urgent action be taken by the government in a more concrete matter so that losses to both farmers and producers, who suffered perpetual loss, are salvaged.
