The Philippines is expected to import sugar for this year while domestic price increases.
The current market retail price of refined sugar is estimated at 48 pesos per kilo, and consumers are suspecting that there is a shortage in our country's supply.
The Philippine Sugar Regulatory Administration however stressed that there is no shortage in the country's sugar supply. "We are in our peak season. There is no shortage," said Rosemarie Gomera, head of the Planning and Policy Department of the PSRA.
Consumers think there is a shortage while there isn't; the prices went up but we have ample supply, said Gomera. The problem is that people won't buy sugar because it's expensive, but there is sugar, she explained.
Gomera attributes the rise in price as an effect of the world market price. India, formerly the second main sugar exporter in the world, has faced cultivation problems that resulted in decrease in their sugar production. The country has turned from a major exporter to an importer.
The Philippines on the other hand is not experiencing the same scenarion, according to PSRA. There is a 'perceived tightness of supply, but no shortage at the moment,' according to Reuters interview with Rafael Coscoluella, administrator of the Philippine Sugar Regulatory Administration. Archimedes Amarra, executive director of the Philippine Sugar Millers' Association said in an interview with ABS-CBN that the country will not run out of supply 'as far as local production is concerned.'
The typhoons Ondoy and Pepeng did not bring about significant damage. While Tarlac and Pangasinan were submerged in water and crops were destroyed, the impact on the country's supply is negligible. Sugar canes withstand weather conditions such as strong winds and much water.
The PSRA said they recommend the importation to secure a safe buffer, as they projected an increase in demand. A safe buffer would mean a supply that could last up to two months.
Importers and food processors used to buy from the world market since the prices from previous crop years were better. Now, food processors have turned to domestic supplies because of the increased cost in the world market, which resulted in the increase in demand, explained Gomera.
Imported sugar will also be used to ensure the country's quota to US will be met this year. 60,000 - 65,000 metric tons of sugar is needed to comply with the US quota. The Philippines has to meet the quota since the US offers a good price for our exports.
The government will ensure that imported sugar will be more or less of the same price as local sugar. Tariff rates will apply just as in other imported goods.
According to Gomera, they reccomend an estimated volume of 150,000 metric tons of sugar to be imported. This will come preferably from a neighboring southeast Asian country, for less shipping cost. Gomera said they are looking into importing from Thailand. The sugar imports are to be shipped into the country between May to June, the lean months of sugar production.
Gomera said this is not the first time the country is importing sugar and that we have done so in the past.
Sugar price may have increased for the year but Gomera said that hopefully next year would give us better prices. Fertilizer price has gone down and by next year the world market may become more stable, hopefully.
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Business story for j109 class. But wait, it's news. :|
comment: ohmaigulay. everyone had featurized stories. (doh)
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