THE top official of the Sugar Regulatory Administration (SRA) has acknowledged that there is, indeed, a shortage of refined sugar being used by the beverage companies in the country.
Newly appointed acting Sugar Regulatory Administrator David John Thaddeus Alba, in a statement Tuesday, August 23, said they are currently consolidating the data as to how much (sugar) is really needed so they can recommend to President Ferdinand Marcos Jr. the necessary actions that they need to take.
Bottler companies confirmed on Tuesday, August 23, that there is a shortage of premium refined sugar.
"We confirm our industry is facing a shortage of premium refined sugar -- a key ingredient in many of our products," Coca-Cola Beverages Philippines Inc., Pepsi-Cola Products Philippines Inc. and ARC Refreshments Corp. said in a joint statement.
The soda companies said they are "working closely with other stakeholders of the industry and the government to address the situation."
"We thank our customers and the public for their continued support to our products and for their understanding," they said.
Alba said that in the case of Coca-Cola, they knew that it is already in a critical place in its sugar needs.
"[But] we would like to emphasize that Pepsi and RC Cola still have their available supply based on their records," he said.
On Saturday, August 20, Coca-Cola said the country's food and beverage industry will need at least 450,000 metric tons of premium refined sugar to meet the consumer demand.
In an official statement, the beverage giant said it uses premium refined sugar in its products, which is different from the sugar used in households.
"We have shared with the President that the industry needs at least 450,000 metric tons of premium refined bottler grade sugar to utilize 100 percent of its manufacturing capacity for the balance of the year and serve the orders of customers who are depending on our products for their sales and income," the company statement read.
Coca-Cola said there is currently a 400,000 metric ton (MT) gap on top of a starting gap of 200,000 metric tons in the local sugar supply for 2022.
This is based on a projected demand of 2.3 million MT for 2022 for the entire country.
Marcos earlier thumbed down the SRA's proposal to import an additional 300,000 MT of sugar in October.
After meeting with the major players in the sugar industry on August 17, the Palace agreed to import up to 150,000 MT to address the shortage in local supply.
Coca-Cola said it is implementing various efforts to mitigate the business impact of the lack of premium refined sugar supply.
It vowed to continue working with the government to find solutions.
"We and the broader industry look forward to continuing to work with the President and all relevant government offices to address the situation and deliver a sustainable solution as we get back to delivering our full line-up of beverages and supporting the country's economic recovery," the firm said.
For Alba, he said the new Sugar Board members just took office and they ask the industry partners to indulge them with some time so they can address this issues based on established facts.
Alba reported that the Sugar Board was recently convened by Marcos and they were directed to immediately come up with Sugar Order 1 regarding sugar allocation.
The Sugar Board, he said, recommended that all sugar for this crop year will be classified as "B" sugar or domestic sugar.
Alba added that there will be no allocation for the US quota but this will of course, be subjected to thorough consultation with all industry stakeholders.
"We also came up with Sugar Order No. 2 which recommends the importation of 150,000 metric tons of refined sugar. While in principle this has been approved, we still need to draw up the mechanics covering this order after consultations as well," he said.
For his part, Negros Occidental Third District Board Member Andrew Montelibano, who chairs the Provincial Board Committee on Agriculture, said they are asking the Negrense officials of the SRA to protect the industry.
Most of the people of the province are dependent on it, Montelibano said.
"It's a good move and it's really high time that someone who has full knowledge and has concern for the industry is there. As planters, they should also protect themselves and their fellow sugar planters," he said.
