The government’s decision to import sugar while milling offThe season is aimed at keeping supplies stable after El Niño damaged the sugarcane crop, sugar producers said.
United Sugar Producers Federation of the Philippines President Manuel R. Lamata said the dry conditions during El Niño caused significant damage to sugarcane.
The Sugar Regulatory Administration (SRA) said the most affected production areas are Batangas, Southern Negros and Mindanao.
According to the Philippine Statistics Authority, sugarcane production during the second quarter fell 42.3% year-on-year to 1.63 million metric tons (MMT), making sugar the hardest-hit crop during the period.
Last week, the SRA approved the import of 240,000 tonnes of refined sugar through Sugar Order (SO) No. 5.
“Despite the relatively stable supply and prices of sugar as of the end of June, the finite supply of sugar and the effect of El Niño on sugar cultivation require preventive and decisive action on the part of the government to ensure a reasonable and stable supply and price ,” said the regulator.
According to the SRA, refined sugar stocks stood at 396,339 tonnes as of July 21, down 18% from a year earlier.
The volume of proposed imports “seems to us suitable to cover the coming harvest season on September 15,” Mr Lamata said via Viber.
SO 5 is open to importers who have participated in SOs 2 and 3 and are licensed SRA International Sugar Traders in good standing.
Mr Lamata has said the sugarcane harvest during the coming crop year is likely to be postponed due to El Niño.
The government weather service, known as PAGASA (Philippine Atmospheric, Geophysical and Astronomical Services Administration), announced the start of the El Niño weather event in June 2023, bringing subnormal rainfall conditions, dry spells and droughts.
According to PAGASA, El Niño ended in early June 2024, but dry conditions are expected to persist.
The U.S. Department of Agriculture forecast that Philippine raw sugar production will remain flat at 1.85 million tons this year due to the effects of El Niño. — Adrian H. Halili