Malacañang explained that the smuggled sugar donated to Kadiwa Centers had to be sold and not be given for free, in consideration of the interest of sugar producers and small farmers.

The Presidential Communications Office (PCO) issued a statement on Tuesday night, March 21, explaining that if the 4,000 metric tons of smuggled sugar were given for free it would create an artificial drop in sugar prices.

"Naiisin mang ipamigay ito nang libre direkta sa mga nangangailangan,kailangang isaalang-alang ang industriya ng asukal, kasama ang mga maliliit na magsasaka (We may want to give it for free directly to those in need but we can't as we have to consider the sugar industry, including small farmers)," PCO said.

"Ang pagbigay ng libre ng mga asukal ay magreresulta sa artipisyal na pagbagsak ng presyo na ikalulugi ng mga kababayan nating nasa industriya ng asukal (Giving the sugar for free will lead to an artificial drop in the prices of sugar which will threaten the livelihood of our countrymen in the sugar industry)," it added.

President Ferdinand "Bongbong" Marcos Jr. has approved the recommendation of the Sugar Regulatory Authority (SRA) to donate to the Department of Agriculture (DA) the 4,000 metric tons of smuggled refined sugar, and it will be sold in Kadiwa Centers at actual mill gate prices, which are currently at P70 per kilo.

Malacañang stressed that the President directed the DA, SRA, and Bureau of Customs (BOC) to ensure that the intercepted smuggled sugar is safe for consumption according to food safety act and other regulations.

The Palace also pointed out that under Customs Modernization and Tariff Act (CMTA), agricultural products seized by the BOC can be given to other agencies as a donation.

"Ito ay alinsunod din sa layon ng Pangulo na maging abot-kaya ang presyo ng asukal (This is also according to the President's goal to make the sugar affordable)," the PCO said.

At present, the prices of refined sugar in public markets are pegged between P86 to P110 per kilo.

Kadiwa Center is a project under the DA, which Marcos heads in a concurrent capacity, that aims to provide affordable food products to consumers by selling produce directly from farmers.