*
Local annual output seen at 2.4 mln T vs 3.1 mln T demand
*
Recently approved imports of more than 500,000T not enough
*
Local sugar prices remain high, add to inflation pressure
(Adds supply and demand estimates in paragraphs 6-7, retail
prices in paragraph 11)
MANILA, May 15 (Reuters) - Philippines President
Ferdinand Marcos Jr approved on Monday imports of up to 150,000
tonnes of sugar to stabilise local prices as a domestic
shortfall looms.
The latest plan comes just three months after the government
said it was seeking to import up to 440,000 tonnes of refined
sugar to boost tight domestic supply, which was on top of
another 64,050 tonnes approved for imports earlier.
"We agreed to additional importation of sugar to stabilise the prices. Maximum amount will be 150,000 MT but probably less," Marcos was quoted as saying in a statement issued by his communications office.
The government regulates sugar imports to protect local producers. Based on data from the Sugar Regulatory Administration (SRA), the country - which usually imports sugar from its Southeast Asian neighbour Thailand - will have a shortfall by the end of August, or at the end of the local milling season. Local sugar production in the current crop year is estimated to hit 2.4 million tonnes, according to the SRA.
That, together with approved import volumes in recent months totalling 504,050 tonnes, will not be enough to meet annual demand that the SRA estimates at 3.1 million tonnes. The SRA, headed by Marcos as he is also the agriculture secretary, deems it necessary to import another 100,000-150,000 tonnes of sugar to avert a shortfall, the statement said. Despite imports in recent months, retail sugar prices remain elevated, adding pressure on inflation, government data showed. Annual inflation eased for a third straight month in April to 6.6%, but remained above the central bank's 2%-4% target. As of May 12, refined sugar in metropolitan Manila markets was selling at 86 pesos to 110 pesos ($1.56-$1.99) per kg, compared with 90-110 pesos per kg at the start of the year.
The May 12 maximum price of 110 pesos is 57% higher than just 70 pesos a year earlier. ($1 = 55.27 Philippine pesos) (Reporting by Enrico Dela Cruz; Editing by Himani Sarkar)
