MANILA, Philippines - Beverage companies are allegedly hoarding sugar which adds to the supply shortage and the increase in the price of the product, the Department of Trade and Industry (DTI) said yesterday.
“They said that industrial (sugar users) are trying to get more than what they need (like) the softdrinks company but (they are not) shipping it out. It is more for their own use,” Trade Undersecretary Zenaida C. Maglaya said yesterday.
“They shouldn’t stock up more than what they need because it is the consumers that are suffering already because the less the supply the more the price go up,” Maglaya explained.
Meanwhile, the price of sugar is expected to go down to P43 per kilo from a high of P52 per kilo once the government sells imported sugar in the market.
“We are writing now a letter to the industrial users particularly the softdrinks. They need to tell us how much that inventories are. They might be removing from the trade what is due the consumer,” Maglaya said.
In fact, she said she asked the traders if they can take back some of the sugar from the industrial users so that the consumers will have access.
Given the reported shortage on sugar, the government is more keen on importing sugar. Maglaya said that they are looking at importing 150,000 metric tons.
Once imported sugar is available in the market, Maglaya said that the price may go down to as low as P43 per kilo.
If the importation is not subsidized, Maglaya said that the imported sugar will be around P50 per kilo which will be of no help to local consumers.
She said that government subsidies will help pull the price down of sugar to P43 per kilo.
The problem with sugar started as early as November, Maglaya noted. She said she was surprised with the news of shortage because she said millers have not mentioned any possibility of shortage during their meetings with the Sugar Regulatory Authority, Agriculture Department and traders.