MANILA: The Philippines has approved the importation of up to 250,000 tonnes of refined sugar by the private sector to meet rising domestic demand amid a shrinking domestic stockpile, a government order dated Aug. 1 showed.
The plan follows last year's purchase programme that allowed up to 150,000 tonnes in imports and was aimed at bringing down local prices at a time when the country's inflation rate was running at its highest in more than nine years.
"There is a need for a timely government intervention ... to maintain a balanced supply and demand ... thereby preventing unreasonable increase in prices," the order issued by state agency Sugar Regulatory Administration (SRA) said.
Domestic refined sugar supply dropped 22% from September 2018 to July this year, while demand rose 7%, SRA data showed.
Industrial sugar users, including food and beverage manufacturers, can bring in up to 100,000 tonnes, the SRA said. Sugar retailers, repackers, wholesalers and traders can import up to 150,000 tonnes, it said.
The Philippines' total raw sugar production in the 2018/19 marketing year, which ends in November, is forecast to reach 2.225 million tonnes, up slightly from the previous year, according to a report issued by a US Department of Agriculture (USDA) attache.
Demand for sugar by industrial users remains strong due to import restrictions and increased taxes on sugar substitutes, including high fructose corn syrup from China.
The Philippines' raw sugar output in 2017/18 totalled 2.1 million tonnes, reflecting a 15% drop in cane production due to unfavourable weather during the first half of 2018.
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