MANILA, Philippines – The Sugar Regulatory Authority (SRA) will be allowed to proceed with its planned importation of an additional 150,000 metric tons of sugar, Agriculture Secretary Proceso Alcala said yesterday.
In an interview with reporters, Alcala said he has endorsed for approval by Finance Secretary Cesar Purisima the SRA’s request to use the Tax Expenditure Subsidy (TES) of the Department of Finance to pay for the 32 percent tariff for the planned sugar importation.
Alcala said the planned sugar importation must be done before local sugar growers start their annual milling by September. Thus, the imported sugar must arrive at the latest by September.
The additional 150,000 MT sugar imports is on top of an earlier 150,000 MT imported earlier this year to plug an unexpected shortfall in domestic sugar supply.
The additional 150,000 MT of sugar would ensure that prices do not jump up while the sugar milling season is just starting and there is a gap in supply, Alcala noted.
Because of the series of typhoons that hit the country in 2009, sugarcane production was affected, resulting in lower sugar production.
Domestic sugar prices jumped from P38 per kilo to as high as P56/kg before government stepped in and imposed a price ceiling of P52/kg.
Alcala assured that the additional importation of sugar is being done following consultation from domestic sugar stakeholders.
In fact, Alcala said the DA is holding another consultation with domestic sugar producers on Aug. 5 to draw up a sugar sufficiency program up to 2015.