The Sugar Regulatory Administration announced on Friday, Oct. 2, that a consensus among industry stakeholders was reached that Philippine sugar this crop year will all be classified as “B” for domestic consumption.
The decision was reached given the significant projected drop in production to 1.66 million metric tons, down from 1.85 million MT last year, it said in a press statement.
Heads of sugar federations, millers, refiners and traders came together in a hybrid meeting hosted by the Philippine Sugar Miller’s Association in Makati City to discuss sugar classification before the issuance of Sugar Order 1 and they agreed to recommend 100 percent “B”, it said.
SO1 sets the classification and allocation of locally produced sugar at the start of the milling.
Sugar Regulatory Administrator Pablo Luis Azcona said that it has been a long time since all stakeholders of the sugar industry gathered in one room to discuss and arrive at a common goal that is shared by the industry.
“I hope we can make this a regular process of consulting each other. After all, we all want what’s best for our industry,” Azcona said.
The consultative meeting came about after there were feelers from some sugar groups and traders to allocate between 4-10 percent of production as A-sugar or the US Sugar Quota.
Azcona said that he is in receipt of a request from the United States Department of Agriculture (USDA) to fill the US quota with 147,000 metric tons.
However given the projected scarcity of sugar this crop year due to the effects of the RSSI infestation and El Nino, majority of the stakeholders expressed that importing sugar to the US under tight supply might be hard to explain to their constituents, he said.
But some traders and federations on the other hand believe a 4-6 percent allocation may actually be “favorable” to farmers to spur demand thereby increasing domestic price, the press statement said.
LuzonFed President Cornelio Toreja said for as long as the offered price for the US market is good, it may be a sound idea to fulfill our commitment to the US trade that has helped us in the past.
Nevertheless, we will abide with the majority, Toreja said after a consensus was reached to support an all-B classification.
Confederation of Sugar Producers Association, Inc. (CONFED) was represented by its President Aurelio Valderrama along with former Negros Occidental Gov. Rafael Coscolluela and former EB Magalona Mayor Alfonso Gamboa who pushed for an all-B.
National Federation of Sugarcane Planters’ President Enrique Rojas, Danny Abelita of PanayFed and former Cong. Manuel Zubiri of Mindanao Federation of Sugarcane Planters were all favorable of an all domestic sugar.
United Federation of Sugar Producers (UNIFED) represented by Antonio Ramos and Julian Garcia said they will join everyone and hope the year starts at a good price.
Azcona said he looks forward to this kind of consensus building as he encouraged a second meeting next month to reassess whether sugar prices will improve and if their output projection is validated.*
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