The Philippine Sugar Millers Association (PSMA) on Tuesday bared optimism the price of sugar at the retail level improves with the start of the crop year in September.
“Given the lower mill gate price of sugar at the start of crop year 2023-2024, which started in September, there should be downward adjustments in retail sugar prices,” said Jesus Barrera, PSMA executive director.
He acknowledged the adjustment should lag as the retail market begins to mirror the lower mill price.
Barrera cited data from the Sugar Regulatory Administration (SRA) showing the mill gate price averaging P3,021.04 per 50-kilogram bag (LKg) in September last year which peaked at P3,798.24 per LKg the following by October with mill prices closing at P 3,000 per LKg.
The PSMA head said the current crop year has favored consumers given the mill gate price averaging P2,825.35 in September this year but improved to only P2,702.73 per LKg just 10 days later.
The price of sugar at mill site improved further on 12 October as the average farm gate price stood slightly above P2,500 per LKg with only one mill selling at P2,700 per bag.
“Overall, mill gate prices in the first six weeks of the new season are way below than previous. It is our sugar producers, particularly our small farmers, who are feeling the squeeze from inflation and lower price, especially now when they are just starting to harvest the crop,” Barrera said.
Earlier, the SRA ordered the suspension of the reclassification, distribution and disposal of imported sugar so as not to depress local prices that coincide with the local milling season.
Resolution 2023-159 issued on 26 September but made public only last week, effectively prevented the domestic release of imported sugar that now form part of reserves.
In the resolution, the SRA also lifted the deadline for the conversion of imported sugar entering the country prior to its issuance.
Pablo Azcona, SRA administrator, acknowledged “irregularities” in a string of sugar farm gate pricing.
Azcona said since the milling started in September, farm gate sugar price fluctuations proved higher than P100 per week, which is unusual.
The volatility in pricing was likely caused by trader speculation borne of an abundance of imported sugar during the milling season.
Based on Department of Agriculture monitoring of public markets in the National Capital Region, sugar retail prices range from P82 to P110 per kilo for refined sugar, P79 to P95 per kilo for washed sugar and P70 to P95 per kilo for brown sugar.
