MANILA, Philippines - Sixteen groups bought bidding documents for the auction scheduled on Tuesday next week for the right to import some 60,000 metric tons (MT) of sugar, records yesterday of the National Food Authority (NFA) showed after a pre-bidding conference.

The importation is meant to stabilize local sugar prices. Prices of refined sugar in Metro Manila markets rose to a range of P52-P60 per kilogram last Feb. 6 from P44-P48/kg last Jan. 5, latest available data of the Bureau of Agricultural Statistics showed.

The groups are: Coca-Cola Bottlers’ Philippines, Inc.; Vatfree Sugar Corp.; Goldenhands Manufacturing, Inc.; New Independence Corp.; Food Entrepreneurs and Exporters of the Philippines; Edison Lee Marketing Corp.; Nismo Trading; Emmanuel Commercial; Oro Allado Commodities, Inc.; TFN Far East, Inc.; Commodity Carriers & Shipping Corp.; San Fernando Eric Commercial, Inc.; Hermano Oil Manufacturing and Sugar Corp.; Unitrade Industrial Manufacturing Corp.; Malinta Food Trading Manufacturing; and Ariston Agri Food Industries.

Malacañang last week issued Executive Order No. 857, authorizing the National Food Authority to import sugar without the regular 38% duty. In effect, private sector groups that will be qualified to import sugar will do so under NFA authority in order to avail of the so-called tax expenditure subsidy scheme, by which the government expects to forego P2.1 billion.

The 60,000 MT, the first tranche of the 150,000-MT imports, is expected to arrive May 15. Specific allocations have been set for the first tranche: 22,000 MT for retailers/repackers, 20,000 MT for industrial users, 12,000 MT for institutions like bakeries and restaurants, and 6,000 MT for food processors-exporters.

Participants in next week’s auction will have to offer performance bonds higher than the P150-per-50 kg bag floor price set by the government.

The second tranche of 90,000 MT, for delivery by July 31, will be done under the state export replacement scheme, by which interested traders who imported sugar last year will have to bring in the same volume.