President Gloria Macapagal-Arroyo yesterday said she will mobilize the National Bureau of Investigation to go after hoarders of sugar who are taking advantage of the commodity's current high price in the world market.

However, a sugar industry source said there is no hoarding of actual sugar in the country, and what is being hoarded are sugar quedans. The sugar is in mill warehouses and not being clandestinely hidden, the source said.

Traders, other speculators and some planters are not cashing in their quedans, they are waiting for prices to go up before releasing their sugar, the source said, adding that, meanwhile, some mills are running out of warehouse space for their sugar.

The President announced that she is going after sugar hoarders while monitoring prices of prime commodities at the Nepa Q-Mart in Quezon City yesterday with Vice President Noli de Castro, Trade and Industry Secretary Peter Favila, Agriculture Secretary Domingo Panganiban, incoming Presidential Chief of Staff Michael Defensor, Sugar Regulatory Administration Administrator James Ledesma, and Quezon City Mayor Feliciano Belmonte.

"We will mobilize the NBI to go after these hoarders and we will import sugar as soon as possible to bring down its price," the President said.

Vice President De Castro, the country's price czar, said the price of sugar is now very volatile due to hoarding because of the high demand for ethanol particularly in Brazil.

Ledesma said the retail price of refined sugar has gone up to P40 kilo and they are hoping that with the importation of sugar it will go down to P36 a kilo.

Arroyo said the current high price of sugar in the local market is likely due to hoarding amid speculations that its price would further increase in the world market.

"That is illegal because we have an anti-hoarding law," she pointed out.

"We will field out the NBI to go after those hoarders who cause the price spiral of sugar," she said.

Ledesma said the SRA expects the first shipment of imported sugar to arrive in the country by the end of February that is aimed at ending speculation of a tight supply of sugar.

Millgate sugar prices for raw "B" sugar ranged from P1,315.55 to P1,361 per Lkg Thursday.

Ledesma it would be ideal for raw sugar to sell at P1,200 per Lkg, to enable the retail price to go down to P36 per kilo, I think everybody will be happy with that.

Favila said they have already released a price guide for consumers and retailers. "Those who will be found jacking up their prices by more than 10 percent would be liable for profiteering," he warned.*CPG

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