Sugar prices stabilizing, but imports still needed - millers

MANILA, Philippines - The Philippines still needs to import sugar even as world prices are coming down and stabilizing, according to the Philippine Sugar Millers Association (PSMA).

However, the PSMA is urging the National Food Authority (NFA) to be more flexible in the terms, saying that importers must be given some flexibility.

PSMA executive vice president V. Francisco Varua said the NFA should “leave the importation of sugar to traders who know the industry” instead of opening it up to users who are not really familiar with the industry.

Varua noted that local sugar prices have stabilized and actually gone down. He said the price for a 50-kilogram bag, has gone down to P2,000 well below the NFA landed cost price of P2,300/Lkg.

However, PSMA projections show that sugar production for crop year 2009 to 2010, will remain flat at 2.1 million metric tons, while consumption is projected to increase 32.61 percent.

With supply seen remaining stagnant against a demand that is expected to continue growing, the PSMA foresees a tightness of supply that can be eased by importation especially during the critical months from August to September this year.

The sugar milling season ends this month.

The sugar crop year starts in September of the current year and ends on Aug. 31 of the succeeding year.