Sugar prices surge to P60 despite increased supplies

Philippine sugar prices rose by double-digit levels on Friday despite increased inventories. Prices of the sweetener surged by 15 percent to P60 from P52 a kilo on Friday, an increase that is “too much," Sugar Regulatory Administration (SRA) chief Rafael Coscolluela said. “Wala nang rason iyang P60. Sobra na iyon, (There is no reason for prices to reach P60 a kilo. That’s too much)," Coscolluela said in an interview with radio dzBB. Sugar prices at P52 a kilo is “just enough," he said. Sugar traders, repackers, and retailers will already earn at that level, he added. Coscolluela also said that the Philippines has more than enough sugar supply this year, adding that supplies are rising due to the milling season. The country has “600 metric tons of sugar available, both raw and refined," which is “expected to last until two months after the end of the milling season in August," Coscolluela added. “There may be groups of dealers spreading the word that we are running out of sugar supplies to justify the price hikes," Coscolluela pointed out. Coscolluela suggested the importation of sugar as one way to counter a shortage of supply if it does occur, which will put retail prices within the P40 to P60 range. However, delivery of sugar imports will not be made earlier than May and can extend until August 15, he said. Last week, the government gave the go-signal to proceed with plans to import raw sugar to stabilize prices. National Economic and Development Authority (NEDA) Acting Director-General Augusto B. Santos said last week that the proposal is “as good as approved" and that sugar traders “may import as much as necessary." Price hikes of sugar as well as other commodities are becoming an everyday occurrence, the radio report said, citing the Department of Trade and Industry (DTI) and Bureau of Agricultural Statistics (BAS). Besides sugar, the prices of eggplants also rose from P50 to P60, and pechay (Chinese cabbage) from P35 to P45 per kilo. - Nikka Corsino, RJAB Jr./GMANews.TV