Food makers back need for refined sugar imports

MANILA, Philippines — The Philippine Chamber of Food Manufacturers Inc. (PCFMI) expressed support for the government’s move to   import 200,000 metric tons (MT) of refined sugar due to the projected tight supply.

In a statement yesterday, PCFMI backed the issuance of Sugar Regulatory Administration (SRA) Sugar Order No. 3,  which allows the importation of 100,000 MT of standard grade refined sugar and 100,000 MT of bottlers’ grade refined sugar.

“Due to the current local shortage of refined sugar that conforms with the quality requirements of food manufacturers, particularly premium and bottler’s grade refined sugar, we join the SRA in its assessment that there is an urgent need for such importation,” PCFMI said.

“Some food chamber members report that their current stocks of refined sugar will be exhausted as early as March,”it said.

The 107-member PCFMI represents companies engaged in the local manufacturing and distribution of essential commodities such as milk, coffee, bakery products and noodles.

According to the PCFMI, only four out of the seven refined sugar producing refineries in the country are able to supply to major food manufacturers.

“These suppliers have informed our members that the destruction to crops caused by Typhoon Odette last December damaged refineries and refined stocks, thus affecting local sugar supply,” PCFMI said, adding that the affected refineries also ceased production for a month until power was restored.

The group emphasized that the lack of available containers and the congestion at the ports of Bacolod and Manila further aggravated the sugar supply situation.

“The inability to import refined sugar that meets the quality standards of food manufacturers poses a threat to food security in the country, specifically the continued supply of essential food commodities. Existing sugar stocks for food manufacturing are dwindling, and therefore importation under the circumstances is necessary,”PCFMI said.

The group stressed that retail prices of sugar have risen dramatically as a result of increased local demand.

Latest data from the SRA showed that the prevailing retail price of refined sugar increased by 18 percent in the first week of February to P59 per kilo from P50 a kilo in the same period last year.

The SRA earlier attributed  the higher prices of sugar to Typhoon Odette, which damaged sugarcane crops, sugar stocks in warehouses and facilities and equipment of sugar mills and refineries in key sugar milling districts in Negros, Panay and Eastern Visayas.

Data from the Department of Agriculture- Disaster Risk Reduction and Management Operations Center showed that sugarcane damage due to Typhoon Odette amounted to P1.15 billion, accounting for 8.6 percent of the total agricultural damage.

The damage caused by Typhoon Odette has also led the SRA to lower its raw sugar estimate for this crop year to 2.072 million MT.