The National Federation of Sugarcane Planters lauded the Sugar Regulatory Administration for allocating 100% of sugar production for the domestic market, starting April 4.
“We laud SRA Administrator Hermie Serafica for listening to our call to scrap the allocation for ‘A’ (US Quota) sugar and, instead, classify 100% of production as ‘B’ sugar for the domestic market,” said NFSP President Enrique D. Rojas Monday, March 29.
Rojas disclosed that Serafica informed him, through SMS message Monday, March 29, that SRA will come out with a new sugar order, allocating 100% of sugar production to the domestic market starting weekend April 4.
“This is welcome news for our sugarcane planters, because this translates to more favorable prices for their sugar, instead of sacrificing a portion of their production to the US market, which traditionally fetches a lower price than B sugar,” Rojas added.
At the start of Crop Year 2020-2021, SRA issued Sugar Order No. 1, classifying 7% of sugar production as “A” sugar to fulfill the country’s export commitment to the US, while classifying the remaining 93% sugar production as “B” sugar earmarked to the domestic market.
Last week, Serafica called up Rojas and informed him that sugar production might drop by more than 100,000 metric tons this crop year. Serafica asked Rojas for his opinion on the matter.
Rojas recommended that the allocation for "A" sugar should be immediately scrapped, and that 100% of forthcoming sugar production should be classified for the domestic market.
“I also asked the SRA head to closely study the projected consumption, considering the drop in demand because of the Covid pandemic. Once we already have a clear picture of the projected demand, we should also conduct a rigid inventory of actual sugar stocks to determine if we really have a supply shortage, and we can ascertain the exact volume of the projected shortage,” Rojas narrated.
If importation is really necessary, then we will know how much to import, Rojas told Serafica.
In view of this forthcoming sugar order changing the allocation for sugar production, Rojas further recommended that SRA should take proactive measures to protect the welfare of sugar producers.
"All stakeholders, particularly the planters, should be consulted on the volume of importation and the timing of its arrival, so that it will not adversely affect our millgate prices. If ever we need to import, it should be after the close of the milling season, and the arrival of the imported sugar should be staggered, so as not to adversely affect millgate sugar prices,” Rojas further said. (PR)