The Sugar Regulatory Administration (SRA) is optimistic that as much as 85,547 metric tons (MT) of refined sugar that it allowed traders and importers to bring into the Philippines through its latest importation program will arrive in the country by October.

“We expect that the 85,547 MT will be imported completely,” SRA Administrator Hermenegildo Serafica said in a text exchange.

To recall, SRA has issued Sugar Order (SO) 3 wherein it allowed the so-called “’A’ Sugar Export Replenishment Program”, allowing those who exported sugar to the United States (US) during the current crop year to import the corresponding volume of sugar that they exported. ‘A’ sugar refers to sugar exports allotted to the US.

This is despite the fact that SRA, sometime in March, also removed the country’s allocation for sugar exports to the US during the current crop year amid the perceived shortfall in supply. 

This was done through the issuance of SO 1-A, which amended SO 1, the order that initially allotted 7 percent of the country’s forecasted sugar production for the year to ‘A’ sugar.

Through SO 1-A, SRA also made it official that the country may no longer achieve its earlier forecast of 2.19 million MT of sugar, bringing down its target to 2.10 million MT.    

SO 1-A also means 100 percent of the country's sugar output should stay here for the rest of the year.

Despite this order and the lack of local supply, as much as 85,547 MT of raw sugar was still exported to the US, making the aforementioned replenishment/importation program possible.

Serafica defended SO 3, explaining that most of the 85,547 MT has already been bought by the traders from the producers and has already been contracted (sold) and to the US buyers before SO 1-A was issued. 

“SRA cannot just tell the traders not to ship the Sugar since those have already been contracted to the US buyers lest there would be lawsuits.  So to replenish the sugar shipped out, SRA issued SO3,” Serafica said.

“Further, our tightness in supply is in refined sugar. What we export to the US is raw sugar,” he added.

The Philippines’ sugar crop year starts in September and ends in August of the following year.

As of August 18, 43,025 MT of refined sugar have already been issued clearances for importation. Out of the volume that has issued clearances, 30,975 MT refined sugar has already arrived in the country and cleared from customs.  

The replenishment must arrive no sooner than July 1, 2021, and no later than October 31, 2021, based on SO 3.

The accredited sugar traders and importers, based on the list submitted to the Bureau of Customs, are Alderberg Industrial Corporation, All Asian Countertrade Inc., Commtrades Group (CTG) Inc., Crystal Sugar Company, Inc., Delmax Corporation, La Perla Sugar Export Corp., Oro-Agritrade, Inc., Oro Allado Commodities, Inc., and Sucden Philippines, Inc.