MANILA, Philippines - Sugar and cement prices have gone up, while the prices of food items and other goods have remained stable, the National Price Coordinating Council (NPCC) said.
In a meeting yesterday, Trade Undersecretary Zenaida Maglaya said the suggested retail price (SRP) for sugar has gone up by P2 per kilo, to P52, while two cement firms decided to hike their prices as a result of the power crisis in Mindanao.
Republic Cement went up by P5 per bag, while Holcim Philippines adjusted their price by P10.
Sugar Regulatory Authority (SRA) executive director Archie Amara said the 25 percent increase in the consumption of soft drinks and iced tea has triggered the expected shortage in sugar.
Aside from the increased demand, the long dry season has stunted the growth of sugar cane which resulted in the two-month delay in milling.
Amara said before, milling season starts September, but now most mills will start operation in November.
“We can’t start production according to the regular schedule,” he said.
The NPCC has approved the importation of an additional 150,000 metric tons of sugar from Brazil.
This is on top of the 150,000 metric tons of sugar imported from Thailand.
Of the initial 150,000 metric tons, only 89,000 have been delivered, with the balance expected to come in by July.
The additional 150,000 metric tons are expected to come in by Aug. 31.
Sugar from Brazil is priced at $581 per metric ton.
The premium from Brazil is $50 per metric ton while freight charges are $95 per metric ton. The tariff is 65 percent.
Amara said they will be asking the government for a tariff exemption subsidy in order to keep sugar prices at P52 per kilo.
The tariff for sugar from Thailand is lower at 38 percent but Amara said there is no more sugar from Thailand.
Maglaya said some retailers are selling sugar at P58 per kilo.
“We are asking the DA (Department of Agriculture) to strengthen the enforcement of the SRP for sugar,” she said.