Confectionery industry seeks gov’t intervention on high sugar prices
The Philippine Confectionery Biscuits & Snack Association (PCBSA), a group of 18 producers of confectionery products, have sought the intervention of the government on the increasing cost of sugar, asking it if they could be allowed to buy cheaper imported sugar.
PCBSA, in a letter sent directly to Trade Secretary Ramon M. Lopez, said the domestic sugar now costs 200 percent more than the sugar produced outside the Philippines.
“Price distortion is very significant to PCBSA members as sugar is the main ingredient of a confectionery item. At the average, sugar constitutes about 60 percent of each confectionery item,” PCBSA President Kissinger Sy said.
Because of higher cost of sugar in the Philippines, Sy said the local confectionery producers is now at stake.
To be exact, the price of domestic sugar has recently shot up to as high as P2,790 per 50-kilogram bag as against the landed price of imported sugar at $400 or about P1,300 per 50-kilogram bag, a report in Manila Bulletin showed.
Sy said that in the meantime, the government should temporarily allow PCBSA members to import sugar.