Top sugar producer backs planned imports

THE Philippines’ largest sugar producer is backing a government plan to import the commodity, which would be the country’s first foreign purchase since it became self-sufficient.

Pedro Roxas, Roxas Holdings Inc. (RHI) chairman and chief executive, said the country’s output is sufficient, but the industry is looking at a 10 percent decline in production this year due to the drought and floods.

The government plans to buy at least 100,000 metric tons of raw sugar from abroad to make up for the domestic shortfall.

“I think it’s a prudent move and its good that the government takes a proactive approach and that we don’t wait too long until its too late to have an impact,” the RHI executive told reporters.

“Now that milling is ongoing, one can see that the figures are a little on the high side,” he said, adding that the number may start to slide in the middle of 2010, once the milling season ends.

Aside from the decline in sugar production, the businessman warned that the government should prepare for the possible increase in the US sugar quota for the Philippines, which Washington has yet to decide on.

To date, the country’s quota for the US is about 135,000 to 137,000 metric tons per year.

“That is one of the reasons why the government has suggested also bringing in more imports because if there is going to be an increase in [the] quota and we have to ship out some, then there will be further tightness probably in the middle of the year,” the RHI executive said, adding that Washington may decide on the matter by next month or March.

For many years, the Philippines has enjoyed being the US’ third biggest supplier of raw sugar, next only to the Dominican Republic and Brazil.

Earlier, Victorias Milling Co. Inc. said extreme bad weather conditions this year would take a toll on the country’s declining sugar cane output.

Starting 2008, the sugar miller warned that it has suffered a significant reduction in its production, adding that the national production dropped 25 percent in metric tons of milled cane milled, and 15 percent in terms of sugar produced.

The United Sugar Producers Federation of the Philippines however is bucking the government’s plan to import sugar, citing the peak of the milling season.

Data from the Bureau of Agricultural Statistics as of January 23 showed that the prevailing price of refined sugar is P52 per kilo, while raw or brown sugar sells for P44 per kilo. –CHINO S. LEYCO Reporter, Manila Times