SRA assures ample supply of sugar

PRICES of sugar in the retail market should remain unchanged, according to the Department of Agriculture's Sugar Regulatory Administration (SRA) even as production of sugar canes for milling is below projected production output.

Consumption demand for sugar has also increased by 23 percent.

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In its report released over the weekend, the SRA said that there is still an ample supply of sugar with inventories reaching 600,000 metric tons in sugar mills alone, excluding the supplies in the warehouses of traders and retailers.

After reviewing and verifying the production figures of this crop year 2009-2010, the SRA has determined there is a need to import an additional volume of 100,000 metric tons of sugar to augment the buffer stocks and ensure consumers have a steady supply of sugar.

SRA determined the need for the additional 100,000 metric tons since figures show that production is below than initially projected.

Initially SRA estimated production to be around 2.18 million metric tons, but because of the extent of El Nino, actual production may be around 1.97 million metric tons.

The initial volume of 150,000 imported sugar may not be sufficient to tide the country-over during the off-milling months. Because of El Nino canes are weak and low in sucrose, which discourages early milling. There is therefore a need to augment the buffer supply during this lean, off milling months.

Part of this imported sugar has already arrived in the country but the bulk of this volume is expected to arrive within the months of June and July.