SUGAR REGULATORY ADMINISTRATION

Secretary Arthur C. Yap of the Department of Agriculture (DA) has directed the Sugar Regulatory Administration (SRA) to submit a suggested retail price (SRP) for sugar amidst reports that refined sugar prices in some Metro Manila outlets had reached a high of PhP 60.00 per kilo, even as a Bureau of Agricultural Statistics (BAS) report as of January 23 reflected a prevailing price of P 52.00 on refined sugar and P 44.00 per kilo on raw or brown sugar.
“The consuming public should be informed about the SRP for sugar to prevent overpricing by speculators and unscrupulous wholesalers and retailers who are taking advantage of the current sugar situation”, Yap stressed.
                                                                                                                              
SRA Administrator Rafael L. Coscolluela has recommended a weekly SRP for refined sugar.  “Millgate prices change every week, and there is a lag time of three weeks before these prices are reflected in the retail market”, Coscolluela explained. The SRA recommends an SRP for refined sugar at the current P 52.00 per kilo until the end of January. Prices are expected to rise to P54.00/kilo for the first week of February, reflecting an increase in average millgate buying prices to PHp1,900 per 50-kilo bag of raw sugar.  SRA will submit to DA and DTI the weekly recommended SRP based on monitored millgate prices.  “If we impose an SRP which is not reflective of millgate prices, we could see a tightening of sugar supply in the retail market”, Coscolluela said. “But we also don’t want to see the public victimized by overpricing,” he added.

Meanwhile, Secretary Yap has directed a programmed importation of up to 150,000 metric tons of sugar at zero tariff through the NFA’s tax expenditure subsidy (TES) to ensure sufficient buffer stock at the end of the sugar milling season.  “We are waiting for the Executive Order that will authorize NFA to undertake the sugar importation”, Yap said.  “SRA will determine the eligible importers, and the imported sugar will be allocated for industrial users, household consumers, institutional users and food processors.  Customs Bonded Warehouse (CBW) operators or food processors who are exporters of sugar-based products can also import directly since they already enjoy a zero tariff on their importations under the Tariff and Customs Code,” Yap added