Watchdog group leader warns of sugar price manipulation
BACOLOD CITY – A leader of a private watchdog group based in Negros Occidental, the country’s top sugar producer, asked concerned government agencies to investigate a possible price manipulation caused by an artificial shortage of the commodity.
“Somebody is gaming the market (in the sugar industry),” said Wennie Sancho, convenor of the Save the Sugar Industry Movement, in a Nov. 20 statement.
“Gaming” the market in the sugar industry, he said, allegedly refers to unethical practices that manipulate prices, and supply and demand to gain an unfair advantage.
“The winners are the large sugar traders and middlemen. They manipulate prices, control supply and profit from supply differences,” Sancho said.
He said there were manipulators creating an artificial shortage of sugar at a time when the demand is high during the Christmas season.
“Efforts should continue to combat sugar smuggling and price manipulations. Advocacy and public pressure can help ensure accountability. We must save Negros and the sugar industry, the lifeblood of our economy,” he said.
Sancho said unscrupulous producers and importers benefit from artificially low millgate prices, exploiting small farmers and consumers.
Influential industry players, he claimed, were also using political connections or market dominance to influence policies and prices, while cartels, syndicates, collude to control prices, limit competition and maximize profit.
Losers
“The losers are the marginal sugar farmers, the agrarian reform beneficiaries, who receive low farmgate prices, struggle to cover costs and risk bankruptcy,” he said.
Consumers also face higher prices, reduced quality or limited access to sugar products.
“Honest producers struggle to compete with manipulated prices potentially leading to business closure,” Sancho said.
“The local economy will suffer from reduced revenue, employment, and economic growth. Government loses revenue from taxes due to manipulated pricing,” he added.
Under the “game”, Sancho said the order of the day would be price fixing, supply hoarding, artificial demand creation, disinformation, and import-export manipulation.
“The consequences are distorted market prices, reduced competition, inefficient allocation of resources. Decreased investors confidence and negative impact on economic growth,” he said.
