SRA awards entire 100,000 metric tons sugar importation using tax export subsidy

MANILA, Philippines - The Sugar Regulatory Authority (SRA) successfully auctioned off yesterday the entire 100,000 metric tons (MT) of sugar approved for importation using the tax export subsidy (TES).

The agency said there was overwhelming response in the bidding with 18 firms submitting offers, but only 16 firms eventually qualified, resulting in an oversubscription with a total bid volume of 134,856 MT.

The joint National Food Authority-SRA bid committee decided to award the sugar imports to 12 firms, noting it was “pleasantly surprised” with the offered service fee for the use of the TES, with bids as high as P250 to a low of P78.

Fasttracking even the approval of the awards, the NFA-SRA awarded yesterday the allocation to the following bidders: Oro Allado, Commodity Carriers & Shipping Corp., Nismo Trading, DGL Commodities, Inc., San Fernando Eric Commercial Inc., Capiz Sugar, Central Azucarera Don Pedro, Macondray Co. Inc., Edison Lee Marketing, Sucden, All Asian and ED & F Manufacturing.

According to Rosemarie Gumera, head of the SRA’s policy planning, the favorable turnout of yesterday’s bids and the high service fee offered was an indication of the market’s need for sugar while awaiting the delayed sugar milling season this year that may start only by late November or December.

The imported sugar would likely be sourced from Brazil, she pointed out.

In past auctions, the sugar shipments came from Brazil, Thailand and Australia.

Gumera said the imported sugar is slated to arrive by Sept. 15 this year.

In the pre-bidding conference Thursday, traders were initially apprehensive about the P52/kilogram suggested retail price (SRP) for refined white sugar.

Acknowledging rising world sugar prices, the SRA has agreed to recommend to the Department of Agriculture (DA) to endorse to the Department of Trade and Industry (DTI) an increase in the SRP to P54/kg.