Sugar industry: diversion of imports from manufacturers to consumers will cause prices to fall

UNSPLASH

The sugar industry said prices would fall if imports were diverted to the end-user market instead of their current role of meeting demand from manufacturers.

“If you want sugar prices to go down, flood the market. Overprovision it. If you put 200,000 metric tons (MT) on the market, prices will go down,” United Sugar Growers Federation President Manuel R. Lamata said during a televised press briefing on DZBB.

He was responding to a question about the Sugar Regulatory Administration (SRA) Sugar Order (SO) No. 3, which authorized the import of 200,000 metric tons of refined sugar to serve as a supply buffer.

“The principle of SO is to lower sugar prices to help consumers. The problem when you read it is that it’s industrial-exclusive, which means all that sugar is for soft drink manufacturers. How will this bring prices down? “, did he declare.

Mr Lamata said the government should survey sugar factories to forecast supply and production.

“We need to know how much sugar is left in the warehouses, if it’s left until the next milling season. We need data like that,” he said.

The SRA said sugar production for the current crop year was 1.8 million metric tons.

“The unusual drop in sugar production was explicitly observed in Negros from production data from March to May. The aberrant drop during these months was due to the residual effect on damaged sugarcane leaves caused by high winds during the onslaught of Super Typhoon Odette,” the SRA said. — Luisa Maria Jacinta C. Jocson

Rachel J. Bradford