SRA eyes unused sugar exports for domestic use

MANILA, Philippines — The Sugar Regulatory Administration (SRA) is eyeing to convert unused sugar for export to the US and the rest of the world to B classification or for domestic use, to boost current supply.

The SRA issued Sugar Orders No. 8 and 9 detailing guidelines for the “reinstatement” and eventual conversion of “homeless” A sugar for the US and of D for the rest of the world market to classification B or domestic sugar.

The orders – dated June 30 but published only last July 17 – were issued following requests from the sugar industry for a guarantee that supply and prices of the commodity in the local market will remain stable.

“The SRA has received requests for the conversion or reclassification of verified unshipped A and D sugar quedans to B sugar quedans considering that the reclassification of A and D sugar quedans was authorized in crop year 2014-2015 and crop year 2013-2014, respectively,” the sugar regulator said in SO 9.

During consultations, planters and millers said the conversion of these sugar for export would “augment the volume of sugar to be made available for domestic consumption, and help alleviate the tightness in the domestic sugar supply for crop year 2022-2023.”

As of June 11, actual raw sugar production only inched up by 0.37 percent from the previous crop year.

Meanwhile, records showed significant volumes of A and D sugar still unshipped, which “could be utilized to alleviate the perceived tightness in domestic sugar balance,” it said.

“SRA records show that there are 11,432 metric tons for A sugar and 5,478 MT for D sugar remaining as per final report on raw sugar balances as of Nov. 20, 202,” it said.

Under SO 8, the SRA said previous SOs declared all unshipped A sugar quedans as “homeless,” non-negotiable and non-marketable.

Meanwhile, previous SOs also provided rules to dispose of D sugar for export or for consumption of sugar-based food exporters, as well as instructions on declaring them as “homeless.”

With the new omnibus guidelines, the SRA said the Sugar Board – chaired by President Marcos as concurrent agriculture secretary – has the sole authority to approve requests to reinstate A or D sugar quedans.

To reinstate A and D sugar, applicants need to settle a reinstatement fee of P15 per 50-kilogram bag upon filing.

The sugar industry is given until Aug. 4 to apply for reinstatement of homeless A and D sugar.

Under SO 9, the SRA said all verified unshipped A and D sugar quedans issued for CY 2020-2021 and previous crop years can be reclassified “on a voluntary basis.”

Holders of these sugar stocks can apply for conversion to B sugar quedans until Aug 15.

They also need to have these sugar verified on or before July 15 so the SRA can decide on the final volume of sugar that can be converted.

Apart from the reinstatement fee, holders also need to settle reclassification fee of P33 per 50-kilogram bag, and revalidation fee of P5 per quedan. The SRA said SO 9 is only valid for crop year 2023-2024.

Earlier this month, the SRA issued SO 7 which called for the importation of a maximum of 150,000 MT of refined sugar by mid-September to address the supply shortfall and ensure stable prices. This was the second importation program for this year and the third for calendar year 2022-2023.

As of June 25, refined sugar production was at 640,908 MT, down 10.99 percent from 720,062.55 produced a year earlier.

Based on DA’s latest monitoring in Metro Manila wet markets, refined sugar retails at P85-110 per kilo while raw sugar is sold at P82-90 per kilo as of yesterday. A year earlier, refined sugar retailed at P90 per kilo while raw sugar was sold at P70 per kilo.