To stabilize domestic sugar prices and address supply concerns, the Sugar Regulatory Administration (SRA) has released guidelines allowing for the release of 16,910 metric tons of local sugar, originally intended for export, into the domestic market.
Sugar Order No. 9, issued on July 17 but dated June 30, 2023, permits the reclassification or conversion of sugar initially allocated for export to the United States under the quota system (“A” sugar) or the world market (“D” sugar) into “B” sugar, suitable for domestic consumption.
The decision was prompted by a modest 0.37% growth in the country’s actual raw sugar production for the year compared to the previous year. The SRA received numerous requests to reclassify sugar originally intended for export, underscoring the importance of ensuring a stable sugar supply in the domestic market and mitigating price fluctuations.
Consultations were held by the SRA with planters, millers associations, and federations to address the tightness in the domestic sugar supply for the current crop year and discuss the reclassification of sugar.
Interested parties seeking reclassification must submit their applications by August 15 this year.
The application process will include a total fee of P38 per 50-kilogram bag, consisting of a reinstatement fee of P15 and a reclassification or conversion fee of P33, along with an additional P5 per quedan.
The implementation of Sugar Order No. 9 will be effective only for crop year 2023-2024, commencing on July 20.
SRA records indicate that there are still 11,432 metric tons of “A” sugar and 5,478 tons of “D” sugar in the country, awaiting shipment, which can be released to the local market to alleviate supply constraints.
As of June 25, 2023, the SRA reported a raw sugar supply of 1.93 million tons, with a demand of 1.59 million tons. Meanwhile, refined sugar demand stood at 811,591 tons, while supply amounted to 1.25 million tons.
Earlier this month, the SRA authorized the importation of 150,000 tons of sugar for the third time in the current crop year under Sugar Order No. 7, further addressing the supply-demand gap.