Sugar Pricing and Market Dynamics in the Philippines

Pablo Luis Azcona, the administrator of the Sugar Regulatory Administration (SRA), stated that the price of refined sugar should be around P80 to P85 per kilo. This statement comes amid reports of refined sugar prices reaching P100 per kilo in certain supermarkets and grocery stores. Azcona noted that the farmgate price of sugar has fluctuated in recent months but is generally trending downward. Despite this, retail prices have not mirrored these decreases, a discrepancy highlighted by Azcona.

Azcona addressed the concern of potential sugar price increases before Christmas, explaining that while the SRA cannot directly control retail pricing set by businessmen, they are attentive to the issue. Historically, farmgate prices tend to decrease before Christmas, leading to expectations of stable prices. However, retailers often raise prices in response to increased demand during the festive season.

The SRA has considered imposing a suggested retail price (SRP) for sugar, but implementation remains a challenge. Azcona emphasized the SRA’s efforts to find ways for the government to support both farmers and retail consumers. He assured an ample supply of sugar this year, particularly as demand spikes during the holiday season.

Global sugar prices have seen significant fluctuations. The UN Food and Agriculture Organization reported that global sugar prices reached a nearly 13-year high in September due to the El Niño weather phenomenon affecting production in countries like India and Thailand. Furthermore, sugar prices surged in the latter half of the previous year, contributing to a 14-year high in inflation