Sugar prices going down

MANILA, Philippines – The Sugar Regulatory Administration (SRA) said that sugar prices are going down, providing some relief for Philippine consumers reeling from a spike in prices of some basic goods.

 

The SRA said in a statement that sugar prices have begun to decrease following its issuance of directives to reclassify 90,000 metric tons of sugar from “D” (for export) to “B” (for domestic consumption) as early as May “to bring down sugar prices that started to rise due to an increase in local demand.”

“As of June 24, prevailing retail price of refined sugar in groceries is down to P49 (US$1.11) per kilo from P50 (US$1.14) per kilo on June 13, according to monitoring reports,” the SRA said.

It said the suggested retail price of refined sugar is P50 per kilo.

“The effect of the conversion program which is meant to augment the domestic supply can be observed by the decrease of sugar prices both in the mill gate and retail market,” the SRA said.

It said that as of June 15, the millgate price of domestic B sugar is down to P1,635.33 (US$37) from  P1,746.63 (US$40) in the May average prior to the conversion order.

The SRA said that as of June 25, the conversion of sugar from for export to domestic consumption has reached 55,166.64 MT or 61.30 % of the 90,000 MT it has authorized for conversion.

It reiterated that the right to convert sugar must be done by July 1, 2014. All the remaining “D” sugar not converted for domestic consumption would be reverted to its original use and will be exported to the world market.

 

Earlier this month, the SRA observed high sugar prices in Metro Manila, driven by demand.

The SRA made the statement as the government probes the spike in the prices of rice and other basic commodities like garlic, despite sufficient supply. 

High rice prices has prompted the government to import 20,000 MT more of rice, on top of the 800,000 MT it has set for 2014. – Rappler.com