PHILIPPINES: Possible volatility keeping buyers on the sidelines
Published: 03/10/2010, 10:20:31 AM
A slump in world sugar prices and possible volatility ahead are holding back Philippine sugar buyers, and the country may import much less than initially planned, according to Dow Jones.
"People are weighing the possible scenarios. After the recent price tumble, their apprehension (of possible losses) is understandable," said Sugar Regulatory Administrator Rafael Coscolluela.
Officials from the Sugar Regulatory Administration, the National Food Authority, and the Ministry of Agriculture will hold a meeting Thursday to consider what to do about its plan to import 150,000 tonnes of sugar, Coscolluela said.
With the import rights for 16,000 tonnes sold, the government still has to decide if it needs to import another 134,000 tonnes. The plan was approved by the cabinet in mid-January to tame rising domestic sugar prices then. The government also temporarily suspended the allocation of the current sugar crop to the strategic reserves quota in order to increase the supply on the spot market.
However, the approaching elections are likely to complicate the decision-making process, he added.
"We don't have quota C (for reserves) for now," said Coscolluela, adding that the policy will remain unchanged in coming months.