Tuesday, February 14, 2006
RP to import 50T metric tons of sugar
THE Philippines is set to import a total of 50,000 metric tons of sugar to cushion the impact of the skyrocketing prices of the commodity in the local market.
However, there is no definite schedule yet as to when the planned importation would be made.
Based on the report of the National Price Coordinating Council, which is chaired by the Department of Trade and Industry (DTI), the surge of sugar prices from P32 per kilogram a month ago to as much as P38 per kilogram last week for refined, and from P24 per kilogram to P30 per kilogram for brown sugar.
Despite this scenario, the Sugar Regulatory Administration reiterated that there is no sugar shortage at this time and there would be none until July of this year.
The sugar administration said the price escalation might be due to various factors.
These include the entry of speculators in sugar trading, perceived tightness in the supply of domestic sugar, and high cost of the product in the world market.
The same report of the sugar administration revealed that another factor to consider is the increase in the US quota to the Philippines this crop year from 137,000 to 187,000 metric tons, showing a growth of 50,000 metric tons.
The shortfall in US production, as caused by the two hurricanes that hit the sugar producing states, is the reason for this addition.
The fulfillment of this quota is of primary importance to the industry, considering that the US is a stable market and the Philippines needs to maintain its reliability as a trading partner.
As such, the domestic supply has to be reduced correspondingly to meet the additional US requirement.
As a response to this prevailing condition, the Philippines would import 50,000 metric tons of refined sugar, duty free just to cover the additional US quota.
The importation would have to be duty free to make it viable, and have to be in refined form to make it more attractive price-wise.
"The sugar industry situationer presented by the sugar administration only shows that expanded Value-Added Tax has nothing to do with the continued increase in the prices of sugar," said DTI regional director Merly M. Cruz.
For Bisaya stories from Davao. Click here. (February 14, 2006 issue)
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