‘Sugar situation in RP still better compared to other countries’

MANILA, Philippines – The Sugar Regulatory Administration (SRA) yesterday said the sugar situation in the Philippines is “better” than that of other countries because there is no shortage of production.

SRA administrator Rafael Coscolluela said sugar price continues to rise despite sufficient supply because local millers base their prices on world market prices.

Coscolluela said the country has enough buffer stock, around 360,000 tons, enough to satisfy local demand until the next planting season.

“We are much better than other countries because we’re not desperately looking for imported sugar,” Coscolluela said.

He said in India, sugar is retailed at P55 per kilogram because its sugar production is hampered by drought.

“In India, the reduction is in production, we are better than them because we have enough supply,” Coscolluela said.

He said there are market speculations that world sugar price will reach P60 per kilo.

Sugar is now sold at P48 to P50 per kilo but is expected to reach P54 per kilo.

The government is attempting to lower sugar prices by importing 150,000 metric tons of sugar, which will come between May and August.

The imported sugar will be exempt from the 40 percent tariff but is subject to the value added tax (VAT).

The Department of Agriculture (DA) found 65 retailers in 22 markets in Metro Manila selling refined sugar higher than the suggested retail price (SRP) of P52 per kilo.

Agriculture Undersecretary Bernie Fondevilla said the owners were issued Show Cause Directives (SCDs), which require them to explain in writing within 48 hours why they should not be prosecuted for selling sugar beyond the SRP.

Failure to submit their explanations with supporting documents would mean they have waived their right to defense, giving the DA the right to file profiteering charges against them for violating Republic Act 7581, also known as the Price Act.

“This is not a violation of due process because the respondents still have the opportunity to present their defense and evidence,” Fondevilla said.

The price monitoring team inspected 22 markets in Quezon City, Antipolo, Marikina, Caloocan, San Juan, Pasay and Manila from Jan. 25 to 26. The team found that the outlets were retailing sugar from P53 to P60 per kilo.

Fondevilla said 58 of the retailers, which sold sugar at P53 to 57 per kilo, were issued the first type of SCD, requiring them to submit a written defense within 48 hours of receipt.

Seven retailers, which sold sugar at P58 above per kilo, were issued the second type of SCD, which requires personal appearance at the DA within 48 hours of receipt. –-Helen Flores (The Philippine Star) with Marianne Go