THE Department of Agriculture said on Thursday that the drop in the millgate prices of sugar could have been caused by competition from imported artificial sweeteners.
Agriculture Secretary Francisco P. Tiu Laurel, Jr. said the projected drop in sugar production this year due to the effects of El Niño and La Niña triggered more imports of artificial sweeteners has risen.
“Two weeks ago, I looked at the whole situation. Our sugar production dropped a bit due to El Niño. The sugar yield from cane also dropped 20%,” he told reporters during a market visit.
The Sugar Regulatory Administration (SRA) has estimated that sugar production this crop year will drop 7.2% to 1.78 million metric tons.
“Then sugar millgate prices dropped as well. When we look at imported artificial sweeteners, volume rose 25%,” he added.
The SRA has said sugar producers are receiving lower offers for their cane by millers, with producers blaming profiteering along the supply chain because retail prices have held steady. He said the millers’ offers will allow the producer to barely break even”
“We will come out with a directive or order that will regulate and monitor these types of artificial sweeteners,” Mr. Laurel said.
“They have to get a permit in order to import or inform the SRA at least,” he added. — Adrian H. Halili