The average mill-gate price of sugar has breached the P2,000-mark for the first time since 2016, as speculations of supply shortage in the local market continue to drive prices upward.
Since the beginning of June, price of raw sugar increased by 42 percent to P2,070 per 50-kilogram bag (LKg) from the standard rate of P1,450 per LKg.
Earlier this week, the confectionery industry has requested the government to allow industry players to import sugar, noting local sugar has become 200 percent more expensive than sourcing overseas.
Aside from mill-gate prices, retail prices of sugar has also risen by 2.1 percent to P48.23 a kilo from P47.22 a kilo at the start of the year.
Sugar producers already raised the alarm when sugar prices hit P1,700 per LKg earlier this year. They said high prices would lead manufacturers and processors to shift to cheaper sweetener alternatives to the detriment of the industry.
While the Sugar Regulatory Administration (SRA) has tried to address increasing prices by issuing an order that would beef up supply in the domestic market, prices have not stabilized.
In a phone interview, SRA board member Emilio Yulo said the board was set to convene on Monday to determine whether the board would allow players to import sugar.
“We will have our production report for the crop year over the weekend. We need to check our figures first… This will help us in arriving at a decision,” he said.
Sugar prices began to escalate following a drop in the estimated production of sugar this crop year to 2.27 million tons from last crop year’s record high of 2.5 million tons.