By Prince Golez
The Department of Agriculture (DA) will establish a two-month sugar buffer stock to lower prices and avoid shortages in the future, President Ferdinand Marcos Jr. announced.
“Again [for] sugar, to cut down speculation, we are guaranteeing a buffer stock of two months. So hindi magkaka-shortage, hindi dapat tataas ang presyo,” Marcos said in a video message.
“We are beginning to rationalize this buying schedule, the importation schedule, so that we will match the crop here of the local producers of sugar. Para hindi naman tayo nagpapasok habang mababa ang presyo ng asukal, so para mag-normalize naman ‘yung presyo,” he added.
Agriculture officials reported during a sectoral meeting in Malacañang that the current retail price of sugar from October 2022 to January 2023 was significantly higher than the price from October 2021 to January 2022.
They reported that as of January 8, raw sugar production was 877,028 metric tons (MT), a 22.41 percent increase over the previous crop year’s (CY) 716,485 MT.
The raw sugar stock balance is 362,263 MT, 0.92 percent less than the previous crop year’s 365,633 MT.
During the same period, refined sugar production reached 316,829.15 MT, 34% more than the previous crop year’s 235,838.45 MT, while domestic use of refined sugar was 211,832.90 MT, 17.78% less than the previous crop year’s 257,646.75 MT.
Meanwhile, the refined sugar stock balance is 132,384.55 MT, up 8.68 percent from 121,813.25 MT last year.
By July 2023, the Sugar Regulatory Administration (SRA) projects a negative sugar-ending inventory.
The Carbonated Soft Drinks (CSD) industry and major sugar industry stakeholders requested the implementation of a supplemental sugar importation program based on the forecast that the current sugar inventory would only last until the second quarter of this year.
The CSD industry claims that without premium refined domestic sugar to manufacture its products, manufacturers will be forced to impose lengthy shutdowns, affecting employee livelihoods.
The DA and the SRA have recommended importing up to 450,000 MT of sugar, following the instruction of Marcos Jr. to keep a two-month sugar buffer stock and lower retail prices.
To help lower sugar prices, the DA also approved the sale of 80,000 bags of seized sugar at KADIWA stores at P70 per kilo, subject to approval from relevant agencies, such as the finance department and SRA.
A “sugar council” was also formed, comprised of sugar planter federations, to discuss policy recommendations to the government for the sugar industry.
