Three sugar planters federations have asked the Sugar Regulatory Administration and the Carbonated Soft Drinks (CSD) industry to show actual and projected sugar production and consumption figures that can shed light on their request for sugar importation.
“Show us the figures,” replied Enrique D. Rojas of the National Federation of Sugarcane Planters (NFSP), Aurelio J. Valderrama Jr. of the Confederation of Sugar Producers’ Associations (CONFED) and Danilo A. Abelita of the Panay Federation of Sugarcane Farmers (PANAYFED), in their respective stands submitted to SRA.
In a letter dated January 6 to President Ferdinand Marcos Jr., the Coca-Cola Beverages, Pepsi-Cola Products and ARC Refreshments (manufacturer of RC Cola products) requested government “to put in place a supplemental importation program in the first quarter of 2023” to prevent another sugar crisis and stabilize sugar prices, a statement from the three federations said Sunday, January 15.
The CSD industry, to which the three soft drink manufacturers belong, represents more than 90 percent of industrial users that require premium-grade refined sugar for production. They project that the current sugar inventory would last until only the second quarter of this year, posing a serious threat to their continued operation, the statement said.
Their request was referred to the SRA, which solicited comments and reactions from sugar producers.
The three federations stated that they are not opposed to importation, as they recognized at the start of Crop Year 2022-2023 that there is a projected shortfall in domestic sugar production. They pointed out that NFSP, CONFED and PANAYFED supported the issuance of Sugar Order No. 4 in August last year for the importation of 300,000 metric tons of sugar.
Considering that the current milling season is almost halfway, SRA should already have the actual sugar production and withdrawals figures from which stakeholders can make a more informed assessment of the sugar supply and demand situation, the statement said.
Before submitting their comments on the soft drink makers’ request, the producers asked SRA to give them the latest data on the sugar situation, such as the latest supply and demand situation, and the Pre-final Crop Estimate and Demand Projection for Crop Year 2022-2023.
They also requested SRA and the CSD industry to provide them with the Specific Monthly Volume Requirements of the CSD industry from January to August 2023 (End of Milling Season), and the proposed volume and schedule of arrival of the requested importation by the CSD industry.
Should the figures justify the request of the CSD industry, the three federations strongly recommend that all importation should be calibrated, such that only the necessary, verified volume of sugar should be imported, and only at the proper time of their need, the statement of the three federations said.
Further, imports should arrive after the peak milling season or, as much as possible, only after the milling season, so that these will not depress domestic millgate prices, they said.
The producers also asked the SRA and the CSD industry to implement safeguards to make sure that the imported sugar are actually used for their intended requirements, and the imports do not leak into the domestic market.*