Imported sugar will not compete with local output

The government will bring in additional imported sugar at the earliest possible shipping date to avoid competing against local output during the peak-milling season next November. “We don’t want competition with local sugar. We are trying to avert such a scenario that we are taking pains to consider this issue in the formulation of the import guidelines which might come out next week," Sugar Regulatory Administrator Bernardo Trebol said in an interview with reporters. The regulator is considering adopting the same bidding guidelines for 150,000 metric tons (MT) imported early this year, “only we want to hasten the process," Trebol said. The government is importing another 100,000 MT of to cover local demand sugar while supply is running low, allotting a large portion of the shipment to sugar retailers. The El Niño-induced dry spell forced the agency to recommend to Malacañang the additional 100,000 MT of the commodity. "Because of El Niño, canes are weak and low in sucrose, which discourages early milling. There is therefore a need to augment the buffer supply during these lean, off milling months," Trebol earlier said. The additional volume would increase the country’s buffer stock to 330,000 MT and ensure that prices of the commodity remain at reasonable levels. "Compounding the situation is the increase in consumption by around 23 percent than the previous crop year, which adds pressure to sugar stocks," Trebol said. The Philippines' annual sugar consumption, including those of industries, is around 2 million MT, according to data from the Philippine Sugar Millers Association. The crop year for the commodity ends on Aug. 31. This would be the first crop year since 2002-2003 that the Philippines would be producing less than 2 million MT, based on an earlier estimate of 1.97 million MT. In crop year 2007-2008, the Philippines recorded the highest raw sugar output of nearly 2.5 million MT. —Carmela Lapeña/VS, GMANews.TV