By Butch Bacaoco
Per SRA price monitoring data, average monthly millsite sugar price for April dropped by more than P130 per bag, from P2,760.37 in March to P P2,626.54 in April. The lowest average weekly price in April was registered in Week Ending April 20 at P2,596.47, while the highest was in Week Ending April 13 at P2,655.27.
Since the start of Crop Year 2024-2025, April posted the second lowest monthly average price, next only to the P2,486.63 recorded in December 2024. The highest monthly average was in February at P2,910.05, after the issuance of Sugar Order No. 2 decreased the volume of available sugar in the domestic market.
Titled “Voluntary Purchase of Crop Year 2024-2025 Locally Produced Farmers’ Share Sugar to Avail of Allocation for Import Program”, Sugar Order No. 2 called for the voluntary purchase by traders of 500,000 metric tons of farmers’ share sugar, which would then be classified as “C” or reserve sugar, in exchange of allocation of rights for future importation.
Traders had the choice whether to participate or not in the program. Only the farmers’ share was covered by the program, while the millers’ share was not covered.
Since sugar bought under the program were automatically classified as “C” or reserve sugar for a period of not more than 90 days, that particular volume of sugar was effectively taken out of the domestic market, thereby reducing the volume of available sugar at the time when sugar production usually reaches its peak.
The limited volume of available sugar in the domestic market by virtue of Sugar Order No. 2, hastened by the aggressive buying by traders who wanted to corner as much import allocation rights as they could, propped up sugar prices in February up to March.
No wonder then that February has recorded the highest monthly average sugar price for this crop year at P2,910.05 per bag.
By March, as the 500,000 mt allocation under Sugar Order No. 2 was filled up, sugar prices tempered down, finally averaging P2,760.37 for the month.
Sugar Order No. 2 was released on February 7. On March 28, the SRA releases Memorandum Circular No. 3 titled “Notice on the Near Completion / Fulfillment of Sugar Order No. 2, Series of 2024-2025”. The memo announced that the 500,000 mt farmers’ share sugar subject to voluntary purchase was almost filled, signaling the near completion or the near end of Sugar Order No. 2’s intervention.
By April, average monthly sugar price decreased to P2,624.54.
