Sugar Regulatory Administration endorses hike in retail price of sugar

MANILA, Philippines - The Sugar Regulatory Administration (SRA) is set to recommend to the Department of Trade and Industry (DTI) an increase in the suggested retail price (SRP) of refined sugar. From the current P52 per kilo, the SRA will recommend that the SRP be raised to P54 to P56 per kilo.

Philippine Sugar Millers Association (PSMA) executive director Archimedes Amarra and SRA head for policy planning Rosemarie Gumera said yesterday that there is a need to increase the domestic sugar SRP following a continued increase in world sugar market prices.

According to Amarra, world sugar market prices have risen to $560 per metric ton this week from $531/MT last week.

He said world sugar prices have been increasing, due to a global production shortfall, which is forcing more countries to look for sugar. Even Thailand which is a traditional supplier is buying back its own sugar to build up its buffer stock.

The Philippines, meanwhile, is projecting a lower production next year of 1.879 million metric tons of sugar from this year’s production target of 1.97 million MT.

As a result of the El Niño phenomenon, Amarra said there had been no rains for at least five months, stunting the growth of sugarcane plants, which in turn will result in a delayed milling season –prompting the additional 100,000 MT sugar importation.

In a pre-bidding conference attended by the National Food Authority (NFA) and held at the SRA office yesterday, traders complained about the P2,300/MT landed cost computation of the SRA, arguing that actual cost is now likely to reach as much as P2,500.

Thus, the traders complained, they would be selling at a loss if the SRP is retained at P52/k.

Acknowledging the higher world market prices, Gumera said that the SRA board set a meeting yesterday to agree on a possible recommendation to the DTI of a higher sugar SRP.

Amarra said that the PSMA, which is a member of the SRA board, is likely to support the higher SRP.

The SRA is also supportive of an upward adjustment, but Gumera stressed that the final decision still depends on the DTI.