Coca-Cola, six others qualify to import sugar to ease prices

Coca-Cola Bottlers Phils., Inc. and six other companies have qualified for government contracts to import 16,000 metric tons (MT) of sugar, the government announced on Tuesday. Joining the soft drink maker are local traders TFN Far East Inc., Food Enterpreneurs and Exporters of the Philippines, Vat-Free Sugar Co., Bee Crescent Blending Corp., Emmanuel Commercial Corp. and Nismo Trading, Inc., the National Food Authority (NFA) said. Ariston Agrifood Industrial Corp. and Malinta Food Trading and Manufacturing were disqualified for technical reasons. The NFA is conducting the auction on behalf of the Sugar Regulatory Administration. It has set a floor price of P150 per 50-kilogram bag for the performance bond. "Whoever submits the highest bid for the performance bond will be the first on the priority list for allocation," said Jose Cordero, chairman of the auction committee. Under the allocation for industrial users, Coca-Cola Bottlers tendered P250 per 50-kilogram bag for 5,000 metric tons — the maximum import limit for industrial users — while TFN tendered P150 per bag for 5,000 more metric tons. TFN represented Del Monte Philippines for 3,000 MT, Nutri-Asia for 1,000 MT and Southeast Asia Foods for 1,000 MT. Under the allocation for food processors, Food Entrepreneurs and Exporters bid for P160 per bag for 2,000 MT; Vat-free tendered P168.88 per bag for 100 MT; and Bee Crescent for P169 per bag for 250 MT. Meanwhile, under the allocation for institutional users, only TFN bid on behalf of client Goldilocks Bakeshop, Inc. for P150 per bag for 1,000 MT. Under the allocation for retailers and repackers, Emmanuel Commercial bid for P150 per bag for 2,000 MT; Nismo Trading for P150.25 per bag for 500 MT; and TFN for P168.88 per bag for 150 MT. Of the 60,000 metric tons of sugar allowed under the first batch, 20,000 have been allotted to industrial users; 6,000 to food processors and exporters; 12,000 to bakeries and bakeshops; and 22,000 to retailers. The government is planning to hold another auction for the remaining unsubscribed volume of 44,000 metric tons. Maru Gumera, assistant to the SRA administrator, said falling local sugar prices might have dampened interest to import more sugar. "The price of domestic sugar has started stabilizing since last week," she pointed out, adding that the government might lower the suggested retail price (SRP) for local sugar to P52 from P54 per kilo. "It should be effective immediately. But we still have to consult with the private sector especially the retailers before we implement this," she added. The government has allowed sugar imports of as much as 150,000 metric tons due to a perceived tightness in local supply. The first batch of 60,000 MT is expected to arrive by May 15, while the second batch of 90,000 MT is due by July 31. — NPA, GMANews.TV