Sugar importation may not reach 300,000 MT

The 300,000 metric tons (MT) of sugar that the government wants to import has caught sugar millers and farmers by surprise saying the volume announced by Agriculture Secretary Manuel Pinol was “too big".

On Sunday, Piñol revealed that sugar planters support the government's plan to import 300,000 MT of sugar which.

However, the Sugar Regulatory Administration (SRA) has yet to compute as to how much of the sweetener should the country really have to purchase abroad. Sugar millers and farmers and even SRA officials during their last board meeting already dismissed the possibility of another importation this year since the industry just started the milling season.

A source from the SRA said the agency is yet to agree on how much sugar the country should import.

Plus, the source fears that the 300,000 MT of sugar that Piñol mentioned is "too big" and could deeply impact the earnings of local farmers.

"It came out of nowhere," the source said, referring to the figure floated by Piñol. "We are not sure of the demand yet and how much should we get to temper the price".

The SRA official said the agency will still meet with planters and farmers to consult them on the ideal amount of sugar to import, saying it may not reach the unprecedented amount of 300,000 MT.

The agriculture secretary made the announcement during a dinner meeting between government officials, including Piñol, and some sugar stakeholders at the Dusit Thani Hotel in Makati Thursday. The meeting was hosted by Senator Juan Miguel Zubiri.

The sugar planters, which Piñol didn't name, said the importation should only be for the "consumer market", without specifying whether it is for domestic or industrial use.

But Piñol said that in what could be an unlikely move, some of the country's sugar planters, who in the past had resisted moves of government to bring in imported sugar, allowed government to import up to 300,000 MT of sugar to bring down prices in the market as well as volunteered to sell refined sugar at 148 per kilo.

Federico Locsin III, president of the Asociacion de Hacenderos de Silay-Saravia, Inc., said that if ever, this will not just be the biggest sugar importation that the government will conduct but will also be the first time that the country is importing at the onset of milling season or at a time where most of the raw supply are being processed and distributed.