MANILA, Philippines - Local research group Ibon Foundation Inc. blamed the government’s move to implement an “off-season” export of sugar for the shortfall in domestic sugar supply.

Ibon said the “off-season” export of some 137,000 metric tons (MT) of sugar to the US a month ahead of its usual schedule is the reason Filipino consumers are now experiencing low-sugar supplies and high prices.

“The supposed tight domestic stocks of sugar may be blamed on the country’s bulk and off-season export of 137,000 MT of sugar to the US, pushed by sugar exporters’ move to take advantage of the increasing global prices,” Ibon said in a statement.

Ibon said the country may have exported sugar stocks reserved for domestic consumption and strategic reserve sugar because of high global prices. This, Ibon said, left a tight supply for local consumption.

In response, the government is set to import 150,000 MT of sugar that is duty-free to dampen increasing local prices, the group said.  

Ibon said it has been the practice of sugar exporters to re-allocate local stocks to meet the US sugar quota and world market sugar demand to take advantage of higher sugar prices. The research group said this would be done at the expense of ensuring the domestic sugar supply.

With this, Ibon said importing sugar only benefits big traders who take advantage of high prices in the world market. Ibon said tax-free importation will cost the government P100 million for every 10,000 MT, or P2.1 billion in foregone revenues.

“Government importation of sugar is an unsound move because it fuels more speculation in the market and sends the message that there is indeed a shortage in sugar supply,” Ibon said.

“Instead of importing sugar, the group calls on the government to suspend sugar exports and urges the Sugar Regulatory Administration to fulfill its function of regulating sugar exports to ensure the interests of consumers,” it added.