Sugar imports to proceed despite waning interest

The government is planning to bring in 45,100 more metric tons (MT) of sugar through an auction of import contracts to private traders and importers on April 20, despite what appears to be waning interest following stabilizing local prices. Based on the import guidelines released by the Sugar Regulatory Administration, the second tranche of imports will conducted per lot. The first lot of 10,000 MT will be allocated to industrial users, the second lot of 4,250 MT to food processors, the third lot of 11,000 MT to institutional users and the fourth lot of 19,850 MT to repackers and retailers. Only accredited importers and traders for 2009 to 2010 will be allowed to bid for the contracts. Bidders must post a bond of P10 per 50-kilogram bag, while winning bidders must pay a nonrefundable service fee of P56 per bag. Sugar imports under the second tranche should arrive by July 31. Earlier this year, the government auctioned off import contracts for 60,000 metric tons of sugar, the first of the two tranches. Seven companies and trading agencies that included Coco-Cola Bottlers Inc, TFN trading Trading, Food Entrepreneurs and Exporters Inc, VAT-Free Sugar Co., Bee Crescent, Emmanuel Commercial and Nismo Trading won the contract to bring a total of 16,000 metric tons. But the weak response to the first tranche forced the SRA to rethink its plan to bring in more sugar. "But since we already announced the two tranches, we might as well go on with the original plan," an official from the agency said. Sugar Agency Chief Regulation Officer Jose Rojo Alisla earlier said the government was keeping the import plan. He noted that unless there is a memo from the National Government or Agriculture department to scrap the remaining imports, they were bound to facilitate the auction. He added that the government was importing the second as replacement for the sugar that was exported to the world market under the so-called export replacement program. The government maintains there is no shortage in local sugar supply. — NPA, GMANews.TV