Arnel Pongyan, 36, repacks sugar at a stall in Tandang Sora Public Market on Friday, May 27, 2022. INQUIRER FILE PHOTO / GRIG C. MONTEGRANDE
Consumers may get some relief from rising sugar prices after the country鈥檚 biggest supermarkets agreed to slash their selling price to P70 a kilo, from a high of P90 to P110 a kilo.
In a statement on Friday, the Office of the Press Secretary (OPS) said the owners of Robinsons Supermarket, SM Supermarket, Puregold Supermarket, and S&R Membership Shopping retail chains had agreed to the price cut following a directive from President Ferdinand Marcos Jr. to reduce the commodity鈥檚 suggested retail price to P70 a kilo.
鈥淭he President lauded the selfless response from these businessmen who are sacrificing not just their own inventory but also their projected business profits for the sake of the ordinary Filipinos at this time when the country is besieged by many problems,鈥� the statement quoted Executive Secretary Victor Rodriguez as saying.
Purchase limit
鈥淭his is a classic display of the indomitable Filipino spirit of 鈥榖ayanihan鈥� and love of country,鈥� he added.
Rodriguez said SM, Robinsons and Puregold had committed to sell a million kilos each of refined sugar at the reduced price as early as next week. Consumers, however, will be allowed to buy just 1 kilo each of the cheaper sugar.
The Palace official said the Department of Trade and Industry would monitor the retailers鈥� compliance with the purchase limit of 1 kilo per consumer 鈥渢o prevent possible household hoarding by some enterprising consumers.鈥�
According to Rodriguez, Victorias Milling Co., a major sugar producer based in Victorias City, Negros Occidental, also committed to make 45,000 50-kilo sacks of premium refined sugar available to soft drinks companies like Coca-Cola Beverages Philippines Inc., Pepsi-Cola Products Philippines Inc. and RC Cola producer ARC Refreshments Corp.
鈥淭his is to avert a possible temporary halt in their operations that could result [in] the displacement of their workers,鈥� he said.
On top of this pledge, Victorias also allotted 500,000 kilos of sugar for consignment in government-supported Kadiwa retail outlets in the Visayas.
鈥榃ithin reason鈥�
The head of the Philippine Chamber of Commerce and Industry (PCCI) welcomed the supermarkets鈥� move.
鈥淚 think it鈥檚 a good thing to lower the price. This is within reason,鈥� PCCI President George Barcelon told the Inquirer, noting that the stores鈥� inventories of carbonated drinks and other sweetened beverages have also been running low.
Barcelon said he hoped the sugar suppliers of these supermarket chains would also adjust their prices to facilitate fair trade. 鈥淪upermarkets usually make a fair margin on what they sell. Since they are agreeable to lowering the prices, [it] means that on their end the suppliers must also follow through [by] lowering their price,鈥� the PCCI official said.
鈥楶residential persuasion鈥�
For House Deputy Speaker Ralph Recto, the supermarkets鈥� move was proof of Marcos鈥� 鈥減ower of presidential persuasion.鈥�
鈥淏ut I suppose it was mutually agreed upon because the President is no fan of unilateral and uninformed decisions,鈥� the Batangas representative told the Inquirer. 鈥淗e dialogues, not monologues. That is the way he troubleshoots. And his tapping of big sugar sellers, instead of sugar barons, shows he understands the market as well,鈥� Recto added.
Consumers have been burdened by the unabated increase in sugar prices, which stood at P100 a kilo as of August 19, double last year鈥檚 level of P50. The price hike has been blamed on the lack of local supply, which recently prompted a controversial importation order for as much 300,000 metric tons of sugar.
However, the order, signed for the President by then Agriculture Undersecretary Leocadio Sebastian, was later disowned and described as 鈥樷�檌llegal鈥欌�� by the Palace. The undersecretary has since resigned.
READ: DA exec quits after 鈥榠llegal鈥� resolution on sugar importation
But on Thursday, Malaca帽ang announced that the President and the sugar millers and refiners he met on August 17 eventually agreed on the importation of 150,000 metric tons, without giving a timetable for the procurement.
READ: PH importing sugar after all: Marcos okays 150,000 MT
鈥楴o shortage鈥�
Still, claims of a sugar shortage have been disputed by local industry groups who instead accuse unscrupulous traders of hoarding supply to artificially jack up prices. For the head of the United Sugar Producers Federation (Unifed), the warehouse raids conducted by the Bureau of Customs (BOC) in Pampanga and Bulacan on Thursday, which led to the discovery of thousands of sacks of allegedly hoarded sugar, exposed just 鈥樷�檛he tip of the iceberg.鈥欌��
鈥淩esigned (Sugar Regulatory Authority [SRA] Administrator Hermenegildo] Serafica kept on saying that the country [had] ran out of sugar to be able to import [300,000 metric tons of] sugar. The traders are keeping the sugar to bring prices up and they make a killing. They bought that sugar from us for P45 per [kilo] and selling for P100 [per kg],鈥� Unifed president Manuel Lamata told the Inquirer in a text message.
鈥淧roof they are hoarding is there is a lot of sugar; no shortage,鈥� said Lamata, adding that refined sugar should be sold at just P75 to P85 a kilo, not P100.
READ: Sugar shortage affects top 3 soda makers
In an interview on dzBB earlier on Friday, Lamata said: 鈥淭he ones they (BOC) are catching are just the tip of the iceberg. What the government must do is conduct an inventory of all sugar mills. That鈥檚 where large volumes of sugar are stored.鈥�
Import permit 鈥榬ecycled鈥�
SRA data, however, showed the local sugar output for the current crop year (ending August 31) at 1.8 million metric tons鈥攕till short of the demand which stands at 2.03 million MT.
This projection was what led to the President鈥檚 decision, in consultation with industry stakeholders, to approve the importation of 150,000 metric tons of sugar on a date yet to be determined.
Meanwhile, the BOC also intercepted a cargo vessel carrying some 140,000 bags or 7,000 metric tons of imported sugar from Thailand at the Subic Port in Zambales, Malaca帽ang said on Friday.
READ: DA to probe artificial sugar shortage
The shipment found on the MV Bangpakaew was covered by a 鈥樷�檙ecycled鈥欌�� import permit, which was used for the 鈥渁ttempted smuggling鈥� of P45.6 million worth of sugar, the Office of the Press Secretary (OPS) said.
According to the OPS, the initial investigation identified the consignee of the allegedly smuggled sugar as Oro-Agritrade Inc., under the account of ARC Refreshments Corp. 鈥淭he Thai exporter is listed as Ruamkamlarp Export Co. Ltd. while the local customs broker was identified as Malou Leynes Buerano,鈥� the OPS said.Citing information from Customs Intelligence and Investigation Service officer in charge Joeffrey Tacio, the OPS said the cargo was covered by a 鈥淪pecial Permit to Discharge and Verified Single Administrative Document鈥� from BOC with a verified clearance from the SRA through a certain Rondell Manjarres.
The vessel was allowed to unload its cargo on Thursday because it was not covered by the 鈥渋llegal鈥� order to import 300,000 metric tons of sugar, the OPS said, quoting a report from Tacio.
Tacio found out that 鈥渢he recycled permit was from an old allocation,鈥� it added.
Acting Customs Commissioner Yogi Filemon ordered the vessel鈥檚 19 crew members to be placed under BOC custody.
Charges will be filed 鈥渋f evidence shows that the bureau鈥檚 port personnel are in connivance with smugglers using recycled sugar import permits,鈥� Press Secretary Trixie Angeles said.