Philippines' sugar import program put on hold

According to the latest Memorandum Circular No. 5 released by the Sugar Regulatory Administration (SRA) on Feb. 16, Philippines would be temporarily halting the previously-announced implementation of the import program for 200,000 mt of refined sugar until further notice.

Since the SRA issued Sugar Order No. 3 on Feb. 4 to allow the import of refined sugar into the country to address the concerns of lower crop production and rising fertilizer prices, there has been a drop in local sugar prices. According to a Tokyo-based sugar trader, local prices have dropped by over 200 Peso/Lkg.

This has led to an appeal from farmers and local officials to the Department of Agriculture and SRA to cease importation during the harvest season. The official release of the decision came about a week later with the issuance of a Temporary Restraining Order (TRO) by the Regional Trial Court of Negros Occidental.

Market sources are saying that this TRO is unprecedented and not seen in recent years. Most traders are currently expecting a delay in the release of the licenses for the imports but some are also considering the possibility of the revision of the amount of refined sugar allowed under the import program.

A refined sugar trader said "Anything can happen. It might be a delay, a revision or something else to appease all stakeholders. Just need to see how things pan out now."