Gov't may increase sugar imports by 50,000-T
MANILA, Philippines - The government may increase planned additional sugar imports to 150,000 tons from the 100,000 tons announced two weeks ago to ensure the country will have enough buffer stocks, an official said on Wednesday.
Production for the current crop year is estimated at around 1.97 million tons, below the initial forecast of 2.18 million tons mainly due to a dry spell caused by the El Nino weather phenomenon.
On June 10, the government said it would buy an extra 100,000 tons of sugar to meet demand.
"We just want to build a buffer so that in case we have a shortfall we don't need to run again and ask for clearance," Archimedes Amarra, a board member of the Sugar Regulatory Administration, told Reuters.
"If there are further delays in the milling, then we may have to bring in the 50,000 tons additional. But initially we feel the 100,000 tons will probably be sufficient, and I expect the country will not run out of supply," said Amarra, who is also executive director of the Philippine Sugar Millers Association.
An official said earlier this month the country's stocks of both refined and raw sugar stood at 600,000 tons, equivalent to about four months of consumption.
The Philippines usually sets aside a buffer stock of at least 300,000 tons sugar by the end of the crop year in August.
The Philippines returned to the global sugar market this year after four years as it initially sought 150,000 tons to meet local demand and continue preferential exports of the sweetener to the United States.