BM.NEWS
The retail prices of refined sugar in Metro Manila rose to as much as P134 per kilogram (kg), a new all-time high, as the supply of the sweetener remains thin.
The latest data from the Sugar Regulatory Administration (SRA) showed that the highest retail price of refined sugar in Metro Manila breached the P130-per-kg level last September 30.
Prior to September 30, the highest retail price of refined sugar in Metro Manila was recorded at P126 per kg.
SRA data showed that the retail price of refined sugar now ranges from a low of P70 per kg to a high of P134 per kg.
The average retail price of refined sugar, meanwhile, is now at a new record-high of P97.535 per kg, 82.27 percent higher than the average quotation of P53.51 per kg recorded a year ago.
SRA data showed that the 2,177-percent increase in domestic refined sugar production was not enough to prop up the country’s supply of the sweetener.
Total refined sugar supply as of September 25 declined by 11.52 percent to 188,476.85 metric tons (MT) from 213,027.65 MT recorded a year ago.
However, it should be noted that bulk of the refined sugar supply during the period or about 122,079.5 MT were imported stocks for industrial use and not for retail consumption.
Refined sugar output during the period reached 39,105.95 MT from 1,717.10 MT last year.
Nonetheless, SRA data showed that total refined sugar demand declined by 9.12 percent to 62,190.4 MT from 68,434.45 MT.
The country’s total physical refined sugar stock, the difference between supply and demand, was at 126,286.45 MT, down by 12.66 percent from last year’s 144,593.2 MT.
Raw sugar production since the start of crop year 2022-2023 rose by 78.26 percent to 106,610 MT from 59,805 MT. Total raw sugar supply as of September 25 stood at 239,959 MT, 23.14 percent lower than last year’s 312,212 MT due to lower carry-over stocks.
SRA data showed that millsite price of raw sugar is now at almost P75 per kg while its retail value in Metro Manila averaged at P76.155 per kg.
In a report, the United States Department of Agriculture-Foreign Agricultural Service (USDA-FAS) in Manila projected that the Philippines will have to import an additional 200,000 MT of sugar on top of the 150,000 MT approved by the government due to expectations of a lackluster output.
The USDA-FAS Manila estimated that the country’s raw sugar output this crop year would hit 1.85 million MT (MMT), slightly above last year’s 1.8 MMT.
“The decline is attributed to the recently announced above-normal rainfall expected until February 2023. This coincides with the start of peak milling, when excess water results in lower sugar recovery,” USDA-FAS Manila said.
The USDA-FAS Manila said the Philippines will not export raw sugar for the second straight crop year as the government has prioritized the country’s requirements.
“Post maintains MY 2023 exports to zero, following the recent SO [Sugar Order] No. 1 allocating all production to domestic consumption. In recent years, the United States has been the sole export market for Philippine raw sugar.”
