Sugar Prices Up on World Demand

BusinessWorld Online in the Philippines reports – Increasing world demand for sugar has led to higher prices in Metro Manila (the Philippines) this week, according to data from the Department of Trade and Industry (DTI), and the government is set to release next week suggested retail prices to facilitate supply.

Data released on Friday by the department showed that from Jan. 14, prices have peaked at P60 per kilogram (kg) for refined, P50 for washed and P50 for brown. The December prices were P45 for refined, P38 for washed and P34 for brown.

After a meeting of National Price Coordinating Council (NPCC) Vice-President Manuel “Noli” L. de Castro, council co-chairman, on Friday said prices have been increasing due to high demand in the world market.

“Their [sugar industry] reason is that there is a demand in the world market,” said Mr. de Castro. “We have enough supply of sugar but some prefer to export their product… we have enough supply [from] our harvest.”

In the same briefing, Agriculture Secretary Arthur C. Yap that the government would release next week a suggested retail price (SRP) to facilitate supply.

“We will come out next week with a reasonable SRP on sugar … [so] we can release more stocks into the market,” Mr. Yap said. “We are looking at P45 to P48 per kg.”

He noted that the P60 per kg monitored price was “an isolated case.”

Meanwhile, Mr. de Castro said the arrival of 150,000 metric tons (MT) of imported sugar is expected to temper prices. “We expect that through the importation prices will go down.”

Mr. Yap said imports are expected to come in May to August.

The country last imported 50,000 MT of refined sugar in 2006 under a counter-trade program with the United States.

Data from the Sugar Regulatory Administration show that given the demand of 2.31 million MT against an estimated stock of 2.6 million MT until end-August, the country, a net exporter of sugar, will have a carry-over of 290,000 MT for the 2010-2011 crop year starting September.

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