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AGRICULTURE Secretary Arthur Yap on Monday ordered the
Sugar Regulatory Authority (SRA) to release its sugar
reserves to the domestic market this week to stabilize
sugar prices following reports the rainy season had cut
back production by as much as 40 percent, which has
already led to the rise in pan de sal prices as well as
other items that extensively use sugar.
Sugar is
classified according to its purpose. Class A refers to
stocks for export to meet the country’s US sugar quota,
Class B for domestic consumption, Class B-1 for food
processors and exporters’ needs, and Class C and Class D
for reserves.
“These
sugar reserves will hit the market this week,” Yap said.
“We are
reserving, though, the needs of food exporters to ensure
their sugar requirements.”
Yap said
a report from the SRA showed the rainy season had
dampened sugar deliveries to the mills, which cut
production by as much as 40 percent.
The
price of sugar, P36 per kilo two weeks ago, went up to
P40 a kilo last week.
“We
would like to assure the public that the situation will
revert to normal in about one to two weeks,” said
Yap. “Our release
of our reserves will address the problem.”
He also
directed the National Food Authority to keep a tight
watch on the supply and market distribution of rice to
prevent undue diversions or price spirals.
“For pan
de sal, we believe there might be a shift to rice and
corn, for which reason, the NFA has been instructed to
focus on market distribution and guard against rice
diversion.” |
