6 December 2024
The Sugar Regulatory Administration is eyeing the regulation of the supply of sugar, which could help address the sharp decline of millgate prices, which is being blamed by some sugar producers on unscrupulous traders.
“That is the only tool that we have,” said Sugar Regulatory Administrator Pablo Luis Azcona, in a press briefing yesterday.
Azcona reported that the lowest price last week recorded at BISCOM was P2,502 per 50kg bag, compared to the production cost of small farmers which is estimated at P2,400 per bag.
SRA has no role in trading or pricing sugar, as stipulated in its charter. “It’s a private sector controlled market,” Azcona stressed.
Sugar producers have been seeking government intervention to arrest the sharp decline in the prices of locally produced sugar.
Cornelio Toreja, president of the Luzon Federation of Sugarcane Growers, said in a letter to Azcona that while official figures show stability in supply, the prices have decreased considerably, while retail market prices show no appreciable and proportionate decline.
This shows a clear manipulation in the supply and demand chain, which necessitates a firm and decisive government hand.
Manuel Antonio Zubiri, president of the Sugarcane Growers Association of Bukidnon Inc (SGABI) said the continued manipulation of sugar prices and uncertainty in covering production costs jeopardizes the viability of the local sugar industry.
“Since the start of the milling season, prices have been erratically (fluctuating) contrary to the supply and demand figures, which raised suspicions that somebody is profiting from recent events,” according to Manuel Lamata, who is the president of the United Sugar Producers Federation (UNIFED).
Azcona said the SRA board has also started making some drafts to address the problems, and will go through all the necessary consultations, and gather suggestions from stakeholders.
The board has to decide what programs to be activated before prices go uncontrollably low, he added.
Other options being considered by the SRA include sugar exportation, and for the government to buy the sugar of farmers, which was explored last year but did not happen, as admitted by Azcona.
He added that SRA is open for a dialog with sugar farmer federations to get their inputs.*