Sugar industry: Diverting imports from manufacturers to consumers will cause prices to fall - BusinessWorld Online

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The sugar industry said prices will fall if imports are diverted to the end-user market instead of their current role servicing manufacturer demand. READ:

“If you want sugar prices to go down, flood the market. Oversupply it. If you put 200,000 metric tons on the market, then prices will go down,” United Sugar Producers Federation President Manuel R. Lamata said in a televised radio briefing over DZBB.

He was responding to a question about the Sugar Regulatory Administration’s Sugar Order No. 3, which authorized the import of 200,000 MT of refined sugar to serve as a supply buffer. “The premise of the SO is to bring down sugar prices to help consumers. The problem when you read it is that it’s exclusive for industrials, meaning that all that sugar is for soft drink makers. How will that bring down prices?,” he said.“We need to find out how much sugar was left in warehouses, if it will tide over to the next milling season. We need data like that,” he said.“The unusual decline in sugar production was explicitly observed in Negros from March to May production data.

 

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