No price control.
This was stated by Ma. Regina Martin, administrator of the Sugar Regulatory Authority (SRA), when asked if price control is needed for the commodity.
As the country’s gatekeeper for sugar, Martin insisted nothing could replace market forces as determinants of prices.
“Price control is counterproductive and must only be imposed only during times of calamities, emergencies and when there is rock-solid proof that there is price or supply manipulation,” she stressed.
Arguing sternly against price control, Martin said sugar trading from the farm to the traders “has been transparent”.
She added that building for sugar is done at the mill site.
Moreover, sugar stocks have started to build up, and this should stabilize prices for the first quarter.
Based on the production data for January 30, refined sugar stocks were 174,733 metric tons (MT), 19 percent higher than the previous year’s stock level as of the same date.
With the current world market price level at around 30 centavos per pound, the retail price of imported sugar at 38 percent tariff would be more or less, the same level as locally-produced sugar, which would make it hard for smugglers to make hay.
Unlike any other commodity, sugar is not heavily subsidized by the government and price increases at the millsite benefits sugarcane farmers, especially small ones, directly.
Martin told members of the National Price Coordinating Council (NPCC) in their February 11 meeting that the mill site price of sugar has started to stabilize and even softened compared to November, 2010 prices.
She revealed that mill site prices should be reflected in retail prices after three weeks. With mill site prices ranging from ₱2,032 to ₱3,000 per 50-kilo bag as of January 30, 2011, retail prices in Metro Manila markets by the fourth week of February should be in the range of ₱58 to ₱64 per kilo of refined sugar.
Wholesale prices in Binondo and Divisoria as of February 15 ranged from ₱2,700 to ₱2,950 per bag, which would make retail prices hover between ₱59 and ₱64 per kilo.
REACTION
For me, it is very unfair for the food exporters, sugar exporters, without any hedge to cancel the D-Sugar restoration and is now coupling with the strong peso exchange rate with the dollar. Philippine economic growth rate may decrease in such a gap as the sugar which is the main exports for the food exporters which has a greater percentage in contributing to our economic growth. If this happens, there will be a massive unemployment in some food companies as this problem may tend to be fatal in the next years without any solution to the abolishment of the D-Sugar. Government shall see the other side of the coin to help these food exporters lift themselves from the burden of abolishing D-Sugar and increasing rate of Peso against the Dollar.Our government is just taking its way to lift itself from the previous government situation. This may be the reason why there are lot of issues today that remain unsolved. The government can’t supply an aid for the companies that are near its closure because there are more important things to do than this. Without the abolishment of the D-Sugar, there will be a huge loss in the reserve sugar and that will add the burden in the crisis of Sugar in our economy. If food exporters worry about the profit they may lose, we may say that our government worries about the Filipino people. There may be a great decrease in the production and employment but if we work as one nation, crisis like this will never be existed.
You have good points. I would want you to answer this: How are you affected by this increase in terms of your consumption? etc. Try to situate your self in the given situation.
TumugonBurahinDon't just focus on the government.
score:18/25