SRA sounds alarm over price manipulation of sugar

The Sugar Regulatory Administration (SRA) suspects the price of sugar is being manipulated by some groups, causing the cost of the sweetener to go up amid an increase in production.

"Those who are spreading rumors of sugar prices increasing are trying to manipulate the market so they can increase their profits at the expense of the consumers and producers," SRA Administrator Hermenegildo Serafica said.

Serafica said over the weekend that there is no reason for sugar prices to go up since sugar stock balance is at an all-time high of over 1.1 million metric tons (MT), which is 143 percent higher than last year’s stock balance during the same period.

He also pointed out that mill gate prices for the commodity "have been holding steady" between 11450 per 50-kilo bag to 11550 per 50-kilo bag for the past five months. Last week's average mill gate price is at 11454 per 50-kilo bag.

Serafica said this is already on the low side compared to sugar prices for the past five years.

A data from SRA showed that as of April 2, the retail price for refined sugar went

to as high as 168.80 per kilo and averaged around 159.77 per kilo. The average price for raw sugar stood at 152.12 a kilo, but it went up to as high as 159.50.

To recall, the high cost of locally produced sugar was the main reason why the Duterte Administration is now pushing for the liberalization of the sugar industry and allow more imported sugar to enter the country.

Amid this issue, the SRA chief expressed concern over the declining demand for local sugar, an unusual trend given that there's usually a spike in the consumption of various products during the election season.

"There have been very little withdrawals in the mills such that all of their warehouses are full and most of them are already preparing additional spaces for storage. Some have rented additional warehouses while some have repurposed their other buildings such as basketball courts to hold sugar," Serafica said.

"I have been going around inspecting sugar mills’ warehouses and traders’ warehouses and many of the imported sugar have not been used," he added.

According to him, as much as 133,500 MT of imported sugar have not been withdrawn from sugar warehouses.