The alarm raised by the Sugar Regulatory Administration over the rise in millgate sugar prices has drawn mixed reactions from industry leaders.

Manuel Lamata, president of the United Sugar Producers Federation of the Philippines, said he was very happy the sugar industry is finally tasting the real prices of its produce because there is no more smuggling.

“As to the alarm raised by the SRA, it is premature to react. Let the industry recover from the calamities of (super typhoon) Yolanda,” Lamata said.

The high prices seem to be fueled by speculation about tight supply and talk about “D” world market sugar to “B” domestic sugar conversion, Rafael Coscolluela, president of the Confederation of Sugar Producers Associations, said.

“These prices are inviting smuggling or even legitimate imports. SRA will be under pressure. Administrator Gina is just sending a warning to speculators,” Coscolluela said.

SRA Administrator Ma. Regina Martin last week, said, “We are alarmed because we do not want retail prices to go up. We do not want industrial buyers to shift to alternative sweeteners or import cheaper sugar.”

Millgate sugar prices have shot up so high, with Panay mills having hit P1,800 per LKg for “B” or domestic sugar, from an average of P1,450 earlier, she said.

The average millgate price of B sugar for the Visayas is P1,669.51, and for Negros P1,626 per LKg, she said.

“Should prices continue to rise, the SRA is considering actions within its power to curb the speculation,” she said.*CPG

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