Abnormally low sugar price in Cebu indicates smuggling

There is an abnormally low retail price of refined sugar in Cebu, which substantiates reports that smuggled sugar has indeed penetrated the Cebu market.

This was disclosed by Enrique Rojas, National Federation of Sugarcane Planters Inc. president, in a letter to Trade and Industry Secretary Jesli Lapus yesterday.

“We strongly urge DTI to immediately act on the presence of smuggled sugar not only in Cebu but also in other areas of the country,” Rojas said.

Based on SRA’s monitoring of sugar prices for March 4-5, average refined sugar price in Negros Occidental was P52.38 per kilo, Negros Oriental – P52.88 and Panay – P52 per kilo. Astonishingly, Cebu’s average price was only P45.23 per kilo with one store selling refined sugar at only P42.15 per kilo, he said.

Jose Mari Miranda, president of the Cebu-based Bogo-Medellin Planters Association, informed us that retail price of refined sugar in Cebu is still at P45.23, Rojas said.

“Cebu does not have a sugar refinery. It is a net domestic importer of refined sugar. How come that average retail price of refined sugar in Cebu is cheaper by more than P7 per kilo compared to prices in Negros which has several sugar refineries? Where does Cebu get its cheaper refined sugar, if not from illegitimate, smuggled sources?” he asked.

Last week, Miranda informed NFSP about the presence of smuggled refined sugar in the Cebu market, Rojas said, adding that the Federation publicly called on the DTI, the Bureau of Customs, SRA and other concerned agencies to crack down on the smugglers.

Nothing has been done about their call for action, Rojas said.

“The entry of smuggled sugar into the domestic market depressed domestic sugar prices. Sugar smuggling has done tremendous damage to sugar producers in the past years. It should not be allowed to inflict further misery to sugar producers,” he said.

Rojas said there has been a considerable decline in millgate prices of raw sugar since February, most probably because of the entry of smuggled sugar.

However, despite the drastic drop of almost P400 per 50-kilo bag in millgate prices, the retail price of refined sugar continues to remain high at more than P50 per kilo, he said.

In last week’s bidding millgate raw sugar prices in the Visayas averaged only P1,579 per bag based on SRA report from P2,000 in mid-January, he said, pointing out that Visayas accounts for almost 70 percent of the country’s sugar production.

The substantial drop in millgate prices should also reflect in the retail market, he said.

“We want to avoid the scenario where consumers are paying high prices for their sugar while the farmers, who are getting less money for their produce, are the ones being blamed for the high prices,” he said.

Rojas called on the DTI to address the issue of prevailing high retail prices of refined sugar despite the decline in millgate prices.*CPG

source: visayandailystar