DTI mulls raising suggested retail price of sugar

MANILA, Philippines -  The government is looking at increasing the suggested retail price (SRP) of sugar to P55-P57 per kilo as prices of sugar continue to rise.

In an interview with reporters, Trade Secretary Gregory Domingo said the increase in the SRP will be slight but he does not know when the increase will be implemented.

“We already agreed in principle,” Domingo said, but stressed that the Department of Agriculture will give the final figure.

The Philippine Sugar Millers Association (PSMA) is pushing for an increase on the retail price for domestic sugar to P54 per kilo from the current P52, after world market prices increased to $560 per metric ton from $531.

Last June, the SRP for sugar went up by P2 from P50 to P52. Earlier, Sugar Regulatory Authority (SRA) executive director Archie Amara said the 25-percent increase in the consumption of beverages like soft drinks and iced tea have 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 a two-month delay in milling.

Amara said most mills will only start operation in September so “we can’t start production according to the regular schedule.”

As such, the National Price Coordinating Council (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.

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 charge is $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. However, Amara said there is no more sugar from Thailand.