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PH sugar crisis a 'state-sponsored monopsony': lawmaker

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ABS-CBN News

<div class="embed-wrap"><figure data-feedback="fb:likes,fb:comments"><img alt="A sugar vendor at the Bagong Silang public market in North Caloocan on Aug. 11, 2022. Jonathan Cellona, ABS-CBN News" src="https://sa.kapamilya.com/absnews/abscbnnews/media/2022/life/09/14/20220811-sugar-vendors-bagong-silang-jc8443.jpg"/><figcaption>A sugar vendor at the Bagong Silang public market in North Caloocan on Aug. 11, 2022. <em>Jonathan Cellona, ABS-CBN News</em></figcaption></figure></div><p>MANILA — The high cost of sugar in the country is a result of a &quot;state-sponsored monopsony,&quot; a lawmaker said Wednesday.</p><p>A monopsony is a market situation where there is only one buyer of a product, or there is one buyer that dominates the market and can control the price of a product.</p><p>According to Albay 2nd District Rep. Joey Salceda, the retail price of sugar, which is being sold in some markets at P120 per kilo, is &quot;artificially high&quot;.</p><p>&quot;It is a state-sponsored monopsony. In other words, all you have to do is to get SRA (Sugar Regulatory Administration) out of the way [and] prices will collapse to P40,&quot; he told ANC&#x27;s &quot;Headstart&quot;.</p><p>The SRA, an attached agency of the Department of Agriculture, is tasked to issue permits for the importation of sugar.</p><p>To bring down sugar prices, Salceda proposes auctioning off the shortage of sugar supply to farmers.</p><p>&quot;Why don&#x27;t we just impose an auction fee for those who want cheaper sugar from Thailand or India,&quot; he said.</p><p>For example, sugar can be bought at P16.67 per kilo in Thailand, he added. Salceda said &quot;world sugar prices are coming down but domestic prices are rising and the differential has been growing.&quot; </p><p>The lawmaker said there is currently a 400,000 metric ton shortage of sugar supply in the country this year.</p><ul class="op-related-articles">	<li><a href="https://news.abs-cbn.com/business/09/14/22/sra-approves-import-of-150000-metric-tons-of-sugar">SRA issues import order for up to 150,000 metric tons of sugar</a></li></ul><p>The SRA has authorized the importation of up to 150,000 metric tons of refined sugar to augment the country&#x27;s supply.</p><p>Half of the sugar to be imported will be for industrial use, while the other half will be for consumers, according to Sugar Order No. 2. </p><p>Sugar importation recently made headlines after the previous SRA board authorized the importation of 300,000 metric tons of sugar, which the Palace later nullified.</p><p>The issue prompted legislative probes and the resignation of several members of the SRA.</p><ul class="op-related-articles">	<li><a href="https://news.abs-cbn.com/business/08/19/22/palace-sugar-shortage-may-be-artificial">Palace looking into possible &#x27;artificial&#x27; sugar shortage; crackdown vs hoarding to continue</a></li>	<li><a href="https://news.abs-cbn.com/video/business/09/01/22/sugar-shortfall-not-as-bad-as-being-portrayed-group">Agri group downplays severity of sugar shortage, calls govt response &#x27;confusing&#x27;</a></li></ul><figure class="op-interactive"><iframe allow="autoplay; fullscreen" frameBorder="0" height="100%" id="ivsplayer01" scrolling="no" src="https://player.ivideosmart.com/ivsplayer/v4/dist/html/iframe-src.html?iframeid=ivsplayer01&amp;key=e8c22c015ca9eafa76f1e3edfa03c603&amp;spid=3001339&amp;vid=2231615" width="100%"></iframe></figure><div class="iwantbar">Watch more News on <a href="https://www.iwanttfc.com/#!/browse/Genres/News/tag_id_genres/id_news" target="_blank">iWantTFC</a></div>

The high cost of sugar in the country is a result of a 'state-sponsored monopsony,' a lawmaker said Wednesday.