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Sourcing refined sugar from abroad is expected to slash the selling price of this sweetener which continues to be sold at around P100 per kilogram, according to the US Department of Agriculture (USDA).
At the same time, the foreign agency estimated that the Philippines could earn as much as P2.4 billion from selling locally-produced sugar to the international market.
The USDA, in a report, said prevailing retail prices of the commodity are expected to decline should the government fulfill its commitment to the World Trade Organization (WTO) and procure sugar from Association of Southeast Asian Nations (Asean) members.
“If the Philippines were to honor its commitments under the WTO and Asean, retail sugar prices are estimated to decline by $480/MT (metric ton) from Asean and $128/MT, at 50 percent tariff or break-even at 65 percent tariff, if outside Asean,” it said.
The prevailing wholesale price of sugar in Metro Manila averaged P4,500 per 50-kilo bag based on the Sugar Regulatory Administration’s price monitoring, the USDA said.
Yet, it noted the wholesale price of sugar purchased from Southeast Asia is lower at P3,153.70 per 50-kilo bag.
Further, sugar imports outside Asean are priced at P4,141.54 per 50-kilo bag (in-quota) and P4,470.82 per 50-kilo bag (out-quota), it added.