SRA: Order on importation of 150K metric tons of sugar out by mid-September

The Sugar Regulatory Administration (SRA) is looking to issue the order allowing the importation of 150,000 metric tons of sugar by the middle of September.

SRA Acting Administrator David Alba said, “Upon the recommendation of the President, we will work on the importation order of 150,000 metric tons of purely refined sugar as a balancing act to stabilize market prices and this is what is enshrined in SO2 (Sugar Order No. 2).”

“Our target is to have the SO2 released by mid-September so its arrival will not interfere with the resumption of operations by our sugar refineries that normally starts mid-November,” he added in his speech at the Philippine Sugar Technologists Association (PHILSUTECH) convention on Thursday.

A copy of the speech was provided to reporters.

Press Secretary Trixie Cruz-Angeles earlier confirmed that the proposed amount of sugar that will be imported is 150,000 metric tons.

During the Senate blue ribbon committee hearing on Tuesday, Executive Secretary Vic Rodriguez said President Ferdinand Marcos Jr. and the SRA Board decided that the proposed 150,000 metric tons of sugar imports will be equally be divided for industrial use (75,000 metric tons) and home consumption (75,000 metric tons).

"This will go through further deliberation so we can draw up the mechanics equitable to all players, before submitting the same to Malacañang for its approval,” Alba said.

The Department of Agriculture earlier said there was a shortage of about 300,000 metric tons of sugar as local production was affected by the onslaught of Typhoon Odette late last year.

While importation is on the table, Alba said, “moving forward, President Marcos emphasized that importation should be our last priority.”

“As much as possible, ayaw niya mag import (he doesn’t want to import). And we can address this if we ingrain in our minds productivity and efficiency,” the SRA chief said.

“There are also doable remedies such as implementing a good drainage plan in your farms and longer planting season among others, and maximizing our resources to invest in research and development, technology and mechanization,” he added.

“This is also why we will work on ensuring that we get the full funding allotted for the implementation of the Sugar Industry Development Act so we can efficiently utilize it to meet the industry’s needs,” Alba said.

Sugar is in the spotlight following the controversial issuance of Sugar Order No. 4 (SO4), authorizing the importation of 300,000 metric tons of sugar which was later on deemed “illegal” as it was signed without the knowledge and expressed approval of Marcos.

Signatories of the controversial order, including Agriculture Undersecretary Leocadio Sebastian, board member Atty. Roland Beltran, and Sugar Regulatory Administration administrator Hermenegildo Serafica, have quit from their posts.

Marcos earlier rejected the proposal to import 300,000 metric tons of sugar despite the increasing prices of the basic commodity due to supply constraints.

The SRA is also proposing to allocate all the sugar produced during the next crop year for local use through Sugar Order No. 1. 

SO1 recommends that sugar for crop year 2022-2023 be classified as “B” sugar or domestic sugar.

The country’s sugar crop year begins every September and ends in August of the following year.

The SRA classifies and allocates sugar produced as “A” for US quota, “B” for domestic consumption, “C” for reserve, and “D” for the world market.

Alba said that the SO1 is targeted to be released next week, as the SRA conducts “thorough consultation with all stakeholders, after which, all inputs will be reverted back to the Palace for the President’s approval.”

“This may be a ticklish issue to some, but this is doable because we have done this in the past and we can do it again. I am confident that our commitment to enforce the US quota will be met again as soon as we have stabilized our nation’s needs. But for now, tayo muna, bayan,” Alba said.

Under an agreement with the World Trade Organization, the US committed to import sugar from sugar-producing countries, such as the Philippines, at lower tariffs and at certain quantities.

For the Philippines, the US Department of Agriculture has an allocation of 145,235 metric tons of sugar for its crop year 2023 or from October 1, 2022 to September 30, 2023.  —NB, GMA News