WHILE the Sugar Regulatory Administration (SRA) announced that the Philippines will have adequate supply of sugar as we enter the industry's peak milling season, sugar retailers however said they will be forced to stop selling the product if it will be sold for the current price.

The Department of Trade and Industry (DTI) earlier imposed a price ceiling on refined sugar for P38 per kilo, based on the prevailing retail price before the state of calamity was declared in the whole regions.

"The Manny Pacquiao Blog". Click here for stories and updates on the Filipino boxing champ.

But the P38 price is based on the buying price for the week of September 6, 2009.

The mill gate price of raw sugar had already climbed in the world market to P1,197.70 per bag for the weekend of September 13, P1210.42 for September 20, and P1256.33 for September 27.

With the increase on the prices per bag, the data would have translated to a retail price of P40.32 per kilo of sugar (September 13), P40.61 (September 20), and P41.67 (September 27).

Taking into consideration the increase, the projected price of refined sugar for October, based on the prices three weeks before and the lag time of three to four weeks, would be between P40 and P42 per kilo.

SRA Administrator Rafael Coscolluela reiterates that the current sugar price should take into consideration the factors beyond the control of sugarcane farmers.

Among these is the increase in farm inputs, particularly fertilizers and fuel. Also, domestic price of sugar reacted to the fluctuation in the world market price. (Glaiza Jarloc/Sunnex)