SRA Refutes Claims of Sugar Surplus in the Philippines

The Sugar Regulatory Administration (SRA) has dismissed claims of a sugar surplus in the Philippines, asserting that stock levels remain consistent and within appropriate limits.

In a statement, SRA Administrator Pablo Luis Azcona countered allegations from the Sugar Council and the National Congress of Unions in the Sugar Industry (Nacusip) that an oversupply of sugar—both imported and locally produced—was driving down prices.

“Sugar stock levels have been constant in the past couple of months,” Azcona said. “Claims of an oversupply that purportedly caused a drop in sugar prices are laced with malice, unless the goal is to announce oversupply to purposely try and lower prices for reasons they only know.”

Sugar Stocks and Production

The SRA reported that current stocks of raw and refined sugar are significantly below last year’s levels:

• Raw sugar stocks: 148,225 metric tons as of October 20, a 31.26% decline from last year.
• Refined sugar stocks: 323,983.20 metric tons, down 37.23%.

Despite a 61% decline in production as of November 10, Azcona emphasized that the SRA had planned for the shortfall with a proper buffer supply to ensure stability.

“The demand for both raw and refined sugar slightly exceeds supply, contrary to claims of oversupply,” Azcona added.

Industry Concerns

The Sugar Council and Nacusip recently voiced concerns about decreasing mill gate prices and diminishing domestic demand. They attributed these trends to the entry of imported sugar and sugar substitutes, questioning the need for refineries to withdraw locally produced raw sugar.

“If there is more than enough supply of imported refined sugar, it makes no business sense for refineries to withdraw raw sugar,” they argued.

SRA’s Transparency and Engagement Efforts

The SRA clarified that its announcement of no further sugar importation until the end of the harvest season (around May or June 2025) was meant to inform stakeholders transparently.

“There was no other intention for that announcement than to stand by our mandate to be transparent and keep the stakeholders informed,” Azcona said.

He also criticized the Sugar Council for skipping consultative meetings organized by the Department of Agriculture (DA) and SRA, accusing them of propagating “false claims” in the media instead of engaging directly with industry leaders.

Sugar Price Trends

Despite concerns, sugar prices have risen. As of October, prices increased by 3.17% to ₱2,827.85 per 50-kilogram bag from ₱2,741.06 in the previous period.

The SRA urged industry groups to collaborate in stabilizing the sector, emphasizing the importance of addressing challenges collectively and constructively.