The Trade Department reiterated its call on suppliers to reduce sugar prices to the level of imports.
Trade Secretary Ramon Lopez said local food processors again sought permission to import sugar anytime they need, especially when local prices were much higher than imports.
“SRA (Sugar Regulatory Authority) made sure they will make available affordable sugar for exporters but I think they should also include the assurance of competitively-priced sugar to food processors even for the domestic market,” he said at the Philippine Chamber of Agriculture and Food Inc. meeting over the weekend.
He added the department received assurance from the SRA it would approve the petition of food processors for import permits.
Imported sugar currently costs about P1,900 per bag while locally-milled sugar is priced over P2,000 per bag.
While only a small portion of local sugar goes to food processing, Lopez cited the efforts of the SRA to link processors to local sugar suppliers.
“I gather that this was because the agency wants to eliminate third-party connections like traders to avoid additional costs to end-users. So it will be straight transaction between supplier and user,” he said.
He noted that processors preferred buying local sugar instead of importing the product to help improve the industry and increase collaboration between suppliers and users.
Lopez said processors would immediately buy local sugar if suppliers sold their product at the same price levels as those of imports.
Processors also vowed to pay the right tariff, Lopez added.
The sugar tariff within Southeast Asia is 5 percent and 50 percent if bought outside the members of the Association of Southeast Asian nations. The local retail price is set at P50 a kilo.