The Confederation of Sugar Producers Associations Inc. (Confed) is asking the Sugar Regulatory Administration (SRA) to look into the slow movement of sugar withdrawals that might be causing the drop in mill gate prices by P50 per 50-kilogram sack in the last two weeks.
Confed spokesperson Raymond Montinola said they were “wondering why appetite for domestic sugar has gone down despite the election season” as evidenced by sugar stock balances in warehouses in sugar areas.
The sugar stock balances for domestic supply as of March 17 is 41% more compared to last sugar crop year of 2017-2018, according to SRA records.
Recent figures showed that sugar supply was at 641,859.35 and 450,762.75 tons for raw and refined sugar, respectively, compared to the last crop year that saw 515,134.29 metric tons and 255,680 metric tons of raw and refined sugar, respectively.
“That is an excess of 321,948.81 metric tons of sugar in our supply chain,” Montinola said.
Last week, the warehouses of First Farmers Holdings Corp. and Hawaiian Philippine Company were reportedly inspected by SRA and they showed maximum capacity stocking. In fact, these sugar mills are now clearing areas in their district for temporary storage units as they expect slow withdrawal of sugar in the next weeks that will follow, Montinola said.
The same report is noted in both in the northern and southern sugar mills in the province of Negros Occidental, he added.
Composite prices today has dropped at farm gate level for raw sugar at P1,450 for a 50-kilo bag (or P29 per kilo) from P1,500 (P30) two weeks ago.
“We suspect that sugar in the retail market might be coming outside of the domestic production,” Montinola said, adding that this is why Confed recently requested SRA to consider holding out any sugar importation as there is enough sugar stock balances in the farm gate level as evidenced by their sugar report.
“Should SRA find it necessary to bring in sugar, it must be done in July. Such sugar imports must be in refined form and will only be for the use of beverage companies,” Montinola said.
“Once more, we extend to SRA our cooperation to assist the local food manufacturers to avail themselves of affordable sugar at our sugar mill districts for their ingredients,” he added. (CNC)