Sugar pricing to prevent ‘reverse smuggling’

BACOLOD CITY, Negros Occidental Philippines—The government has not been keen on suggesting a low retail price for sugar because that could prompt sugar producers to smuggle it out of the country, Sugar Regulatory Administration (SRA) Administrator Rafael Coscolluela said Monday.

If Philippine sugar could fetch an overseas price higher than domestic prices, some people would resort to "reverse smuggling" and sell them to foreign buyers, thereby threatening domestic supply, Coscolluela warned

The SRP at P52 per kilo up to the end of the month has provided for a reasonable margin for traders, repackers and retailers, Coscolluela said.

He said the SRP for the first week of February would be set at P54 a kilo based on the mill gate buying price of sugar three weeks ago.

Every week thereafter the SRA would set the suggested SRP based on prevailing market forces, Coscolluela added.

He also disclosed the government’s plan to import about 150,000 metric tons of sugar sometime in April or May.

Agriculture Secretary Arthur Yap has directed a programmed importation of up to 150,000 metric tons of sugar at zero tariff through the National Food Authority's tax expenditure subsidy (TES) to ensure a sufficient buffer stock at the end of the sugar milling season.

Luis Tongoy of the Sugar Board said the retail prices of sugar have been far lower than P60 per kilo as reported in Manila.

He called for accurate reporting of sugar prices so as not to cause panic, he said.

He said retail prices of sugar per kilo at Metro Manila major supermarkets ranged from P45 (Hermano refined) to P52.75 (Royal Jade refined) for refined sugar; from P39.30 to P45 per kilo of washed sugar; and from P37.45 to P42.75 per kilo of brown sugar.

Manuel Lamata, president of the United Sugar Producers Federation of the Philippines, said the country's supply of sugar has been aggravated by climate change and land reform.

"Before CARP (Comprehensive Agrarian Reform Program) was implemented, the sugar industry used to produce three million tons of sugar, more than enough to ensure the food security of our country plus the fuel requirement of ethanol. By cutting up the land to three hectares, it becomes unproductive," he said.

Lamata said the government should bite the bullet and make a strong political stand by placing the whole sugar industry under a special economic zone to secure the future needs of the country.

source: inquirer.net