NFA sets bidding for export of raw sugar

The National Food Authority has scheduled the bidding for the exportation of 25,000 metric tons of domestic raw sugar and the importation of the same volume of refined sugar for Feb. 8.

NFA officials told The STAR that the agency was forced to postpone the scheduled bidding this week due to numerous queries from interested parties. The food agency was supposed to do away with the prequalification and instead allow all traders accredited by the Sugar Regulatory Administration to participate, but decided this week to still hold a prebidding conference on Feb. 2 to respond to the need for more information.

President Estrada earlier tasked the NFA to export 100,000 metric tons of domestic raw sugar into the world market in order to get rid of excess stocks which are unduly pulling down local prices to unprofitable levels for sugar farmers.

The President's decision was in response to a recommendation from Agriculture Secretary Edgardo Angara, who earlier met with SRA administrator Nicolas Alonso and NFA administrator Eduardo Nonato Joson to come up with ways to assist sugar farmers.

The huge stock level in the domestic market was traced to the large volumes of smuggled sugar that were able to enter the country unapprehended, and weak demand due to poor consumer purchasing power.

As a result, the local millside price of raw sugar dropped from P800 per 50-kilo bag in September 1999 to as low as P600 per bag.

Mr. Estrada has also directed the NFA to continue buying raw sugar from the domestic market in order to stabilize prices at a price of P700 to P750 per bag, but sugar farmers say that the low volume of government purchases do not enable NFA to effectively influence prices, which have remained at less than P700 per bag.

George Zubiri, president of the Confederation of Sugar Producers Associations (Confed), said that in Bukidnon where his farm is located, the price is still low at P655 per bag while in Negros, the highest price posted was around P680 per bag. This, despite the fact that NFA has been buying in Bukidnon at P750 per bag.

Meanwhile, NFA officials said an initial 25,000 metric tons of raw sugar which the NFA earlier bought from the local market will be shipped out between March and May 15 this year. Only one bidder will be given the right to export the entire 25,000 tons since the volume is just enough to fill one boat.

Also on Feb. 8, the NFA will accept tender offers for the importation of 25,000 metric tons of refined sugar for delivery in June, or just before the onset of the lean sugar supply season in the country.