Sugar Regulatory Administrator Ma. Regina Bautista Martin yesterday said the call for the allocation of “C”, or reserve sugar, is still under study as the current stock of the country’s sugar is still lower than that during the same period last year.
However, current millgate prices are also lower than last year, she noted.
The SRA has asked the Philippine Sugar Corp. to study the possibility of quedan financing if it becomes necessary to set aside a portion of the country’s sugar as “C”, she added.
“Our total physical stock is now at 394,402 MT (278,444 raw sugar plus 115,957 refined sugar), whereas in crop year 2011-12, physical stock was 413,090 MT as of November 13, 2011 or a difference of 18,668 MT,” Martin added.
Comparing the composite prices for the same period last year, SRA records show that for crop year 2011-12, sugar was at P1,229.90 compared to CY 2012-13 at P1,208.78, or a difference of P21.11, she said.
Withdrawals for raw sugar is stronger than the previous week ending, she also said.
“As we are awaiting crop estimate report, we are observing this sugar stocks versus last year considering more mills have started much earlier this year. If our consumers buy heavily this time, this would mean they may not think of buying imported sugar at 18 percent tariff next year, she added.
The situation is under observation for the next two weeks, she said.
Enrique Rojas, National Federation of Sugarcane Planters president, and Rafael Coscolluela, president of the Confederation of Sugar Producers Association, earlier called on the SRA to immediately allocate a portion of the country’s current sugar supply as “C” because of an upsurge in production and a drop in millgate prices to below P1,300 per Lkg.
On the other hand, United Sugar Producers Federation of the Philippines president Manuel Lamata said UNIFEDwill agree to the allocation of “C”, or reserve sugar, provided sugar planters are covered by quedan financing.
Coscolluela said Sunday that the allocation of “C” sugar is needed because of “a worrisome drop in sugar prices over the past several weeks, as well as the possibility of a further drop starting January 2013 due to the reduction in tariff on imported sugar to 18 percent, and high inventory levels from January to May 2013, which are the peak milling months.”
MARTIN AT ISO
Meanwhile, Martin will chair the International Sugar Organization conference in London next week.
The conference will showcase the world’s leading sugar buyers, producers, farmers and host a challenging debate on the theme “Who is responsible for sustainable sugarcane?”, the ISO website said.
This is an opportunity to network with global experts, high level decision makers and the industry’s leaders, it said.
“Sustainability is a journey. Credible systems can improve efficiency, provide market access and help to conserve natural resources. This conference provides the platform to explore and discuss some of the challenges that face each member of the supply chain,” it added.*CPG