THE Sugar Regulatory Authority (SRA) Board said it will not allow the conversion of D-class sugar, which is meant for export, into B-class meant for the domestic market for the current milling season.
In a statement released late Monday, SRA Board Member Roland B. Beltran said the decision reflects the agency’s view that the domestic market is not suffering from shortages.
“There is no reason for conversion from D to B sugar since there is sufficient supply for the domestic market and enough buffer stock for the next cropping season, [crop year] 2018-2019,” he added.
Separately, the agency said Pepsi Cola Products Philippines, Inc. (PCPPI) has applied for permission to dispose of its High Fructose Corn Syrup (HFCS) inventory amid a switch to domestically produced sugar in its products.
The SRA said the tax treatment of HFCS products is disadvantageous compared with those using domestic sugar.
In the same statement, the Sugar Board also said it issued Sugar Order 1-B, which amends the current crop year share to 6% for Class A or US quota sugar and the remaining 94% for Class B.
“This policy issuance was brought about in response to the recommendations of various planters organizations and the Sugar Alliance of the Philippines to eliminate the 1% [class] D allocation, thus, improve the composite price of sugar,” it said.
The agency also said in the memorandum that this ensures a “comfortable buffer” of Class B sugar by the end of the season to maintain a stable supply and prices.
The order will take effect after April 8. — Anna Gabriela A. Mogato
