Lower Sugar Prices in September Expected as Milling Season Commences

Local prices of sugar are now expected to go down by September as sugar milling operations start next week.

This is according to the Philippine Chamber of Agriculture and Food Inc. (PCAFI) president Danilo Fausto during a radio interview, who added that sugar millers have a collective capacity to produce 8,000 metric tons of sugar daily.

Fausto added during the interview that the country has imported 200,000 metric tons of sugar from May until July, of which 90 percent has already arrived in the country.

However, Fausto said that although sugar prices are seen to decline, he does not know by how much as other external factors may be at play, including oil and fertilizer prices.

Importation of sugar

200,000 metric tons of sugar were imported to the country upon the approval of the Sugar Regulatory Authority.

This comes as the country faced less supply of sugar as multiple typhoons, including Typhoon Odette in December 2021, hampered sugar millers and farmers from delivering their otherwise usual output.

Fausto said that production of sugar fell to around 1.8 million to 1.9 million metric tons from the originally expected output of over 2.1 million tons due to the said typhoons.

Of the total production, Fausto said that some 50 percent of the supply goes to industrial consumers, 30 percent goes to the end users or household consumers, while some 20 percent goes to hospitals and the food and beverage industries.

President Ferdinand “Bongbong” Marcos Jr. blocked the further importation of 300,000 metric tons of sugar in the country and denied its authorization.

Press Secretary Trixie Cruz-Angeles said in a statement that the Sugar Regulatory Administration board signed a notice that seemed to include the signature of the president, but was not that of Marcos Jr.

Meanwhile, one member of the board who signed the “illegal” importation of 300,000 metric tons of sugar has resigned citing “health reasons.” (GFB)