'Cartel behavior' behind high sugar prices, says senator

MANILA, Philippines — A lawmaker pointed to “cartel behavior” as the culprit for the still high prices of sugar in the market

In an interview over radio station dzXL on Thursday, Sen. Risa Hontiveros said the price of sugar should have dropped in the market after the government earlier allowed the importation of 440 metric tons of sugar.

“It appears that was not the true objective, or the price of sugar is being manipulated by some players. This is cartel behavior. Common sense, if there is more than enough supply, the price of sugar should have dropped, but it did not,” the senator said in Filipino.

In the same interview, Hontiveros also questioned the government’s move to allow only three companies to import sugar at present. She said that previous sugar orders issued by the Sugar Regulatory Administration (SRA) allowed for the participation of from 10 to 30 sugar importers.

“The number of sugar importers was reduced. In previous sugar orders, many importers were allowed to participate. Some involved 10 to 30 importers. Why is that only 3 were allowed to join now?” the senator said.

Hontiveros cited the Philippine Association of Supermarkets Inc.’s claim that despite enough supply, the prices of prime commodities, including sugar, have not dropped in the markets over the past year.

“Even in supermarkets, according to the Philippine Association of Supermarkets Inc., the prices of prime commodities, including onions and sugar, have not dropped amid enough supply,” she said.

The high prices of sugar and supply instability, according to Hontiveros, have also disrupted the operations of industrial sugar users and have placed the jobs of many workers in peril.

“So how can these industrial users sustain their productions and maintain the jobs of their workers?”

Meanwhile, the senator said industrial sugar users should be allowed by the government to directly import sugar to sustain their operations for a short term while there is a felt shortage in supply. She added that for the medium and long-term, the government should support the development of the local sugar industry and local sugar producers.

“In the short term and while sugar supply is low, industrial users should be allowed to directly import sugar. But in the medium and longer term, government should support the development of the local sugar industry and local sugar producers,” said Hontiveros.