The Department of Agriculture said in its March 15 report that prices of sugar have begun to decline as prevailing prices in many areas have decreased from P40 to P38 per kilo.

This indicates that the drop in wholesale price is now being felt by consumers, the DA report said, adding that easing of prices may be attributed to good sugar production this year.

Sugar Regulatory Administration data show that sugar production as of Feb. 26, 2006 this year totaled 1,412,184 metric tons, almost 70 percent of the projected production for the current crop year of 2,018 million metric tons.

Sugar balances are still high at 665,609 metric tons for raw and 172,513 metric tons for refined sugar, the DA report said.

Millgate prices of raw sugar have adjusted from an average high of P1, 329.34 per 50-kilo Lkg. last January 22 to P1,159.77 in February 5 this year, to the current level of around P1,230.

The DA report said that wholesale prices for refined sugar have also moved downwards from the high of P1, 840 per bag to the current level of P1,720 which translates to a refined retail price level of around P38 per kilo.

In Metro Manila, SRA monitoring shows that the lowest priced refined sugar can be bought in Divisoria and Marikina at P37 per kilo and the highest, in Sangandaan at P44.45.

In February, world market prices have remained high, peaking at over 19 US cents per pound and now settling at around 17 US cents.*NLG

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