After reports on overpricing and importation of sugar have come out, people have been asking as to the availability of sugar in the local market.

According to Philippine Sugar Research Institute (Philsurin) Dir. Gen. Leon Arceo, as told by the Manila Bulletin Agriculture editor Zac Sarian, there is no sugar shortage in the country.

“According to Director General Arceo, the reason why there is an increase in the price of sugar in the local market is because the retailers are following the price trend in the world market,” said Sarian.

There is a sharp decline in the global supply of sugar, as the sugar production in India dropped by 7 million tons due to drought. In Brazil, low sugar production is blamed on heavy rainfall which diluted the sugar content in its crops. India and Brazil are the two largest sugar-producing countries.

In the Philippines, however, during the last cropping season of 2008-2009, we were able to produce 2.19 million tons of sugar, which is 190,000 tons more of the country’s average sugar consumption. Even with this year’s export quota of 142,000 tons to the US, the Philippines will still have more than enough supply of sugar.

“Director Arceo said we have enough sugar production in the country. However, there might still be an artificial sugar shortage if the producers hold and hoard their stocks of sugar,” relates Sarian. “The thing is it is better if our sugar planters are earning enough so they would be encouraged to plant more, there would be supply, and the prices would be stable.”

The Department of Agriculture has set the suggested retail price of P52 per kilo of sugar. In order to ease the prices of sugar in the local market, the government plans to import 150,000 tons of sugar, the first importation of sugar in Southeast Asia.

There are also a growing number of producers of muscovado sugar which can be a good substitute for the sugar which people usually use, but for now, it is still intended for export to Europe.