Sugar, bread, LPG prices seen to rise this holiday season

MANILA, Philippines – Sugar, liquefied petroleum gas and bread prices are expected to further go up this Christmas season, the Department of Trade and Industry (DTI) announced yesterday.

At the same time, the DTI has removed the suggested retail price (SRP) for sugar to allow the movement in prices because of the shortage in sugar.

Speaking to reporters at the sidelines of yesterday National Price Coordinating Council (NPCC) meeting yesterday morning, Trade Secretary Gregory L. Domingo said that it has been difficult to set the SRP for sugar given spikes in the prices.

DTI cleared that even without the SRP, they will still be protecting the consumers versus unscrupulous retailers. The DTI said they will be pricing the ex mill prices of sugar so that the consumers will have a price guide.

The last SRP for sugar before it was lifted was P52 per kilo. Currently sugar retails for P63 to P65 per kilo. The shortage for sugar right now is at 110,000 tons. It is expected to balloon to 310,000 tons next year because millers can only produce 1.95 million metric tons. The domestic consumption is also 1.95 metric tons but the Philippines must export 200,000 tons of sugar to the United States every year.

Domingo estimated that at a minimum the country needs to import 310,000 tons next year. Domingo said that that they will be changing the import schedule of the Philippines. They said they might import between February to April in order to take advantage of the lower price.

Farmer representative to the Sugar Board Pablito Sandoval said that the price of sugar is expected to stabilize by January because millers have started their production this month. He said prices is expected to go back to P56 per kilo at the beginning of next year.

Meanwhile, Philippine Baking Group (Philbaking) President Walter Co said that the price of loaf bread will again go up by P1 to P1.50 while pandesal prices will increase by P0.50 to P0.75. Last month, bakers adjusted their price by P1 per loaf and P0.50 per ten pack pandesal because of higher flour prices. This time, Co said the price increase was because of sugar, LPG and shortening prices.

However, Co said that bakers will continue to sell the Pinoy Tasty until the end of the holiday season. Pinoy Tasty is only P36.00 per loaf and is available nationwide.

On LPG prices, Domingo said it will go up by P33 per 11 kilogram cylinder. This is due to the increase in the prices in the world market. Before the increase, the SRP for LPG is at P605 to P675. He said the increase has not been implemented fully so prices are expected to rise soon.

Other noche Buena products like ham, cheese and pasta will not have any more price adjustments this December. The price of ham already went up last November. Likewise, milk and canned meats will not have any price increases and will have the same SRP.