Gov’t assures there’s no shortage of sugar amid Coke’s complaints

beverage manufacturing firm Coca-Cola FEMSA Philippines, Inc. (Coke) complained about having a hard time to buy refined sugar, the government was forced to issue a statement and clarify that there is no shortage in sugar.

During the first Philippine Agriculture and Trade Investment Forum, Agriculture Secretary Emmanuel Piñol said he will meet with local refiners on Monday to discuss their alleged refusal to sell sugar to Coke.

According to him, Coke formally filed a complaint about this to National Economic and Development Authority (NEDA).

"Coke complained to NEDA so [Socioeconomic Planning Secretary] Ernesto Pernia called me to ask if there is sugar shortage and I said no," Piñol said. "But a lot are speculating among local producers that there is because prices are high."

For his part, Sugar Regulatory Administration (SRA) Board Member Roland Beltran said Coke already sought its help on the matter and that the company was already assured of supply by refiners.

However, he said there is indeed a "tightness" in sugar production.

"The problem is not with the refiners. The problem is the 'tightness' in sugar production and the unreasonable high prices of raw sugar. The refiners are faced with 'tightness' of supply from raw sugar the prices of which, as I said, is unreasonably high," Beltran said.

"With Sugar Order No. 9, reclassifying or converting D Sugar or world market sugar to Domestic Market or B Sugar, we now have an increased inventory of Sugar for the Domestic Market, and the prices of sugar will necessarily stabilize as a matter of course," he added.

When sought for comment, Coke only reiterated what SRA said: "we were already assured of local sugar."

Based on the Visayas Average Bid Prices for the production week-ending May 13, the price of B sugar jumped by 26.10 percent to R1,765 per 50-kilo bag from R1,400.47 in the last crop year. This is also higher by 2.39 percent from the previous week's price of R1724.69. (MBM)