Gov’t mulls importation of sugar to control prices

BACOLOD CITY, Philippines—The government is considering importing sugar with tax subsidy to temper price increases.

Sugar Regulatory Administrator Rafael Coscolluela said Friday that this information was relayed to him by Trade and Industry Undersecretary Zenaida Maglaya.

Concern has been raised over the rising price of sugar in the retail market which could hit P50 a kilo in Metro Manila from P47 as of Friday.

An initial proposal of Agriculture Secretary Arthur Yap was to import 50,000 metric tons of sugar but it was pointed out that this may be a little too much and two shipments of a total of 20,000 metric tons may be more appropriate, Coscolluela said.

The country's estimated sugar production is 2.180 million metric tons and the domestic demand could reach 2.1 million metric tons with the drying up of smuggled sugar sources, he said.

With the US sugar quota of 137,000 tons that the Philippines is committed to fill, the country's sugar industry might be producing less than its needs to meet domestic and US requirements and may eat into its carryover stocks, he said.

The world market price of sugar is above 28 cents per pound or P47.59 a kilo at zero percent tariff on entry in the Philippines, he said.

Without Value Added Tax, the price will be P43.50, lower than the current P47-48 but projected to reach P50 per kg because.

"But we have to make sure that only ordinary consumers benefit from the cheaper sugar," he said.

source: newsinfo.inquirer.net