NFA sets bidding for performance bond to import sugar
Manila (17 February) -- The National Food Authority is inviting all interested sugar traders and end-users for today's (Feb. 16, 2010) pre-bidding of the performance bond for the importation of 60,000 metric tons (MT) of refined sugar.
This volume will be the first in the two tranches of the 150,000 MT private sector-financed sugar importation following the government approval to import the commodity using the tax expenditure subsidy of the NFA as provided under Executive Order 857 issued on January 29, 2010.
The second tranche of the importation totaling 90,000 MT will be done through the sugar industry's export replacement scheme.
EO 857 authorized the NFA to intervene in the sugar market to soften or stabilize the domestic price of sugar and price of the commodity. This is one of the mitigating actions the government has implemented to ease the present tightness in the domestic sugar supply.
Earlier this month, the NFA also started to sell refined sugar through the Institutionalized Bigasan Sa Palengke (IBSP) at a subsidized price of P48 per kilogram.
The Philippine Sugar Millers Association (PSMA) subsidized the balance differential to make the commodity more affordable to consumers.
Under the guidelines issued for sugar importation, only those traders and end-users accredited by the Sugar Regulatory Administration and registered with the SRA in the crop year 2009-2010 will be eligible to participate in the bidding.
For the first tranche, bidding shall be made on a per lot basis. Lot number I totaling 20,000 MT is allocated for industrial users, lot number 2 totaling 6,000 MT for food processors-exporters, lot number 3 with 12,000 MT for institutions and lot number 4 with a volume of 22,000 MT allotted for repackers-retailers.
All interested accredited sugar traders and end users can participate in the bidding of one or all the lots.
The final bidding for the first tranche of the sugar imports will be on February 23 with the commodity scheduled to arrive by May 15. For the 2nd tranche, expected arrival will be up to July 31 this year.
The bidding will be held at ten in the morning at the Social Hall of the Sugar Regulatory Administration, Philippine Sugar Center Bldg., North Avenue in Diliman Quezon City.
For more information on the story, the public may send their inquiries via Text NFA program through mobile number 09176210927. (PIA-MMIO) [top]