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Philippines: Sugar supply woes add to inflation pressure
MANILA, Philippines — The current supply problem on local sugar may cause further pressure on the already threatened inflation if solutions are not provided.
In a radio interview, National Economic and Development Authority (NEDA) Undersecretary Rosemarie Edillon said there is a current supply deficit on local sugar.
The tight supply has prompted the government to allow the importation of 200,000 metric tons of sugar.
However, the order currently hangs in the balance after a regional trial court in Negros Occidental issued a writ of prelimiary injunction on the Sugar Regulatory Administration (SRA).
This means the SRA has been ordered to stop the importation unless the injunction is lifted by the court.
“If this (deficit) will not be solved, there will be impact on inflation, if not shortage on the manufacturing sector and this will affect their production,” Edillon said.
The Philippines is already dealing with soaring oil prices due to the Ukraine-Russia conflict, which could potentially lead to inflation upticks.
Any increases in prices of other commodities, especially food, will only add to further inflationary pressures.
“All that will be produced by our sugar farmers will be sold, but it’s still not enough for what we need,” Edillon said.
Last week, food manufacturers backed the government’s plan, saying there is an urgent need for the importation due to the current local shortage.
Some even reported that the inventory of refined sugar may be depleted as early as this month.
Sugar prices have been on the rise due to the onslaught of Typhoon Odette in December, which affected sugarcane crops, sugar stocks in warehouses, and facilities and equipment of sugar mills and refineries in key sugar milling districts in the Visayas.
Odette’s damage to the sugarcane industry reached P1.15 billion.
Source: https://www.philstar.com/business/2022/03/04/2164731/sugar-supply-woes-add-inflation-pressure