Unnecessary delay

Last November, our government announced that it is delaying any further sugar importation plans until mid-2025, as agreed upon in a meeting between Agriculture Secretary Francisco Tiu Laurel Jr. and Sugar Regulatory Administration (SRA) administrator Pablo Luis Azcona.

- MARY ANN LL. REYES

This move, it said, aims to shield domestic producers since both raw and refined sugar stocks are said to be sufficient to cover projected demand and that the delay will allow for a clearer view of the domestic supply after this harvest season, which has been affected by El Niño, lowering sugar yields and delaying the harvest.

The SRA earlier said that Philippine raw sugar production for crop year 2024-2025 is projected to drop by 7.29 percent to 1.78 million metric tons, the lowest in 25 years due to the adverse effects of extreme weather conditions.

Because local sugar production has been on a decline, at best stagnant, in the past so many years, it has not been able to meet demand, which on the other hand has been on the rise.

Market analyst Knowledge Sourcing Intelligence recently observed that the Philippines has a rapidly growing food & beverage (F&B) industry and one of the biggest contributors to the nation's economy, making up about half of its manufacturing sector.

It noted that the overall food and beverages market expansion will increase the demand for sugar in the sector and that the rapid proliferation of chain restaurants and meal delivery services adds to this need, as consumers seek different culinary experiences that frequently include sweetened beverages and sweets.

The report also mentioned that the online segment of the Philippine sugar market is expected to grow significantly owing to several factors, such as evolving consumer behaviors coupled with its technological advancements and the evolving landscape of e-commerce.

It explained that online shopping being convenient, consumers can now access a large array of sugar products from different companies without visiting physical stores.