No Sugar MAV for 2024: A Welcome Relief for Consumers Amidst Abundant Stocks

An Overview of the MAV System The Minimum Access Volume (MAV) system allows for a specific quantity of a commodity to be imported at a lower tariff rate, aimed at balancing domestic supply and demand. For sugar, the MAV mechanism is not opened annually, as it is governed by the SRA's oversight. Unlike other commodities, sugar's MAV is only activated under specific circumstances, such as significant price surges or supply shortages. The last time the MAV was opened was in 2022, when prices for refined sugar soared above P100 per kilo due to dwindling stocks. Current Sugar Stocks and Pricing The SRA has confirmed that as of October 13, 2023, approximately 126,408 metric tons of the approved 240,000 metric tons of sugar under Sugar Order 5 for the crop year 2023-2024 have already arrived in the Philippines. This influx of imports has contributed to a stable market, with the average price of refined sugar in Metro Manila holding steady at P84.62 per kilo and raw sugar at P76.15 per kilo. The stability in prices reflects the government's effective management of sugar imports and local production. The Importance of Stability Pablo Azcona, the SRA administrator and CEO, emphasized the importance of the current supply situation, stating, "At the moment, we have ample sugar stocks, and we are already milling. Retail prices have also been stable since November 2023." This stability is crucial not just for consumers but also for businesses that rely on sugar as a key ingredient. The absence of MAV for sugar next year is a positive development, allowing the market to function without the volatility that can arise from sudden importation measures.

Looking Ahead: The Future of Sugar in the Philippines While the decision not to open the MAV for sugar is a positive sign for consumers, it also raises questions about the long-term sustainability of the sugar industry in the Philippines. The government is currently accepting applications for the 2025 MAV, but sugar remains excluded from this list. This raises the stakes for local producers, who must ensure that their operations remain competitive in the face of global sugar prices and ongoing importation programs for other commodities.