Pernia: Cartel to blame for high sugar prices
Credit to Author: Mayvelin U. Caraballo, TMT| Date: Tue, 19 Nov 2019 16:40:16 +0000
SOCIOECONOMIC Planning Secretary Ernesto Pernia has blamed the cartel system for the high prices of sugar, saying that too many people were involved in the trading of the staple and must be probed.
In an interview on the sidelines of the 8th M&E Network Philippines Forum in Pasig City on Tuesday, the chief of the National Economic and Development Authority (NEDA) said the main problem of the sugar industry was the existence of the cartel system.
The sugar cartel poses a “challenge” to regulators, he added.
“I think there’s too many handlers, too many middleman involved in the process,” Pernia told reporters. “That has to be investigated.”
Pressed to comment on the Senate’s request to defer the liberalization of the sugar industry, Pernia agreed that the government need not to fully deregulate it.
“Well, we’ll probably do it slowly. We’ll try other steps first. If they succeed, then there may be no need for full-scale liberalization,” he said.
Last week, senators asked President Rodrigo Duterte, through Resolution 213, “not to pursue the planned liberalization,” warning that it would negatively affect on sugar farmers and industry workers in over 20 provinces.
A recent The Manila Times report citing Sugar Regulatory Administration data said that raw sugar production in the country reached 33,328 metric tons (MT) at the start of October, a 59-percent decrease from 81,152 MT last year, while total raw sugar output at 50-kilogram (kg) bags fell to 666,560 MT from 1.623 million MT a year earlier.|
During the period, the wholesale price of raw and refined sugar was at P1,700 and P2,300 per 50-kg bag, respectively, compared to last year’s P1,980 and P2,550 per 50-kilo bag. On the other hand, retail prices averaged P44 to P50/kg as of October 3.