NFA moves to stabilize sugar price in Metro Manila

MANILA, Philippines - The National Food Authority (NFA) is moving to stabilize the price of sugar in Metro Manila. The NFA is selling refined sugar at a subsidized price of P48 per kilo through the agency’s Institutionalized Bigasan sa Palengke (IBSP) outlets.

The agency started distributing refined sugar this month following the issuance of Executive Order 857 which authorizes it to intervene in the stabilization of supply and prices of sugar in view of the current tight sugar situation in the market.

Based on price monitoring conducted by the Bureau of Agricultural Statistics from Feb. 9-13, the weekly average of retail prices of sugar in Metro Manila was recorded at P54.53/kg for refined sugar, washed at P47.77/kg and brown at P 45.80/kg.

The price of refined sugar reached a high of P60/kg prior to the issuance of EO 857.

NFA Administrator Jessup P. Navarro said out of the initial 700 50-kg bags allocated by the Sugar Regulatory Administration for sale through the NFA, the agency had already distributed a total of 439 bags or 21,950 kilograms to various IBSP outlets in Metro Manila markets.

The NFA is repacking the sugar into one kilogram packs for easy distribution to consumers.

To mitigate the shortfall in domestic sugar supply, the government has allowed the importation of 150,000 metric tons of refined sugar by the private sector using the tax expenditure subsidy of the NFA as provided for under EO 857.

The first tranche of 60,000 MT will be done through open bidding on Feb. 23.

The importation of the second tranche of 90,000 MT will be done through the export-replacement program of the sugar industry.

The first tranche is expected to arrive by May 15, 2010, while the delivery of the second tranche is up to July 31, 2010.