Sugar Regulatory Administration chief James Ledesma yesterday said the drop in "B" or domestic sugar prices can be attributed to the weakening sugar demand, but said the present price level is still acceptable.

"It's not a bad price," Ledesma said of the P975 per 50-kilo Lkg level, which sugar farmers describe as a plunge from the P1,110 per Lkg they enjoyed at the peak of milling season several months back.

Domestic sugar prices are usually expected to increase after the cessation of the milling season because the sugar supply is already dwindling.

Considering that the opposite happened, the obvious reason, Ledesma said, could be smuggling. "But there is no proof. We also study and investigate it, but there is no validation," he said.

Still, Ledesma said the SRA is always vigilant on reports of sugar smuggling, and will ask authorities to arrest anyone who is involved.

Jose Mari Miranda, president of the Bogo-Medellin Planters Association in Cebu, had earlier said he believes the plunge in domestic sugar price is caused by both smuggling and "technical smuggling."

That is because, he said, if domestic consumption is relatively stable, then domestic sugar prices should have increased due to the decrease in supply, as has traditionally happened in the past. "But how come prices dipped instead of appreciating?" he asked.

Ledesma said the SRA is still trying to figure out why sugar demand has dropped. "The basic cause is the reduction in demand (thus), the softening of prices. We're trying to make it better; we're trying to understand why."

He, however, noted the shift in consumer preferences wherein many Filipinos are now opting for "no sugar" products, and use substitutes as a possible reason for the weakening demand.*NLG

back to top