Sun Star - THE suggested reference price (SRP) of refined sugar will be retained at P52 per kilo, said the decision of the National Price Coordinating Council (NPCC).
The NPCC is chaired by the Department of Trade and Industry (DTI). The Sugar Regulatory Administration (SRA) earlier has recommended a P56 per kilo SRP of refined sugar, following the complaints of retailers in public markets and grocery owners who could no longer sell refined sugar at the SRP level of P52 per kilo.
SRA’s recommended SRP was based on the last bidded price of sugar at millsite and the prevailing wholesale prices from June to August.
Retailers said the wholesale price has gone up and is no longer profitable for them to sell sugar at the current SRP level.
SRA admitted that the spike in the domestic price of sugar was influenced by the trend of increasing sugar prices in the global market as well as the lean sugar supply in the domestic market brought by El Niño, which affected the harvest of the past crop year and the delayed milling season in the current crop year.
SRA, in coordination with the National Food Authority, implemented the importation of sugar using the tax expenditure subsidy of NFA so that sugar will come in at a price lower than the duty–paid importation, which will reach as high as P 70.00 per kilo of refined sugar.
Out of the 250,000 metric tons total importation, 217,814 metric tons has arrived as of September 8. The importation hopefully could fill-in the supply gap during the lean months.