Rising sugar prices cause alarm among local producers, millers
Local producers and millers expressed alarm over rising sugar prices, which prompted them to seek the intervention of Sugar Regulatory Administration (SRA).
“We are calling for the immediate conversion of all remaining and unshipped ‘D’ sugar [or those meant for world markets] to ‘B’ sugar with conversion rights to producers to help address the surge in ‘B’ sugar prices,” a group of producers and millers said in a letter to SRA.
“We are already alarmed by the way ‘B’ or Domestic sugar prices have escalated.
As of this week, prices are averaging P1,750.00 per bag, with no signs of abating. Almost all sugar producers will agree that this price level is no longer conducive or sustainable for the industry,” the group added.
Based on the Visayas Average Bid Prices for the production week-ending May 13, which was cited in Manila Bulletin report, the price of B sugar jumped by 26.10 percent to P1,765 per 50-kilo bag from P1,400.47 in the last crop year. This is also higher by 2.39 percent from the previous week’s price of PP1724.69.
“We ourselves are sugar planters and millers and have been with the industry for decades. And based on experience, we can say for certain that if these prices persist, or worse climb further, we can expect a backlash from our consumers and over-reaction from the national government,” the group further said.
“Households will reduce their sugar consumption, while our institutional and industrial consumers will reformulate their products by using less sugar or more alternative sweeteners,” it added.