Manila, Philippines: A coalition of sugarcane farmers has voiced their support for the investigation initiated by the Sugar Regulatory Administration (SRA) into the distressingly low farm-gate prices of sugar, reported Business.inquirer.
In an official statement, the Sugar Council, representing sugarcane farmers from three planters federations, expressed their anticipation for a comprehensive and expeditious inquiry, eagerly awaiting the results. The investigation’s primary focus will be to uncover the reasons behind farm-gate sugar prices falling below the industry’s expected benchmark of P3,000 per 50-kilo bag.
SRA Administrator Paul Azcona outlined the regulator’s commitment to probing the causes of depressed prices, particularly during the first two bids of this milling season, where prices ranged from P2,500 to P2,750 per bag. Azcona affirmed that the inquiry would encompass scrutiny of mills, traders, and importers to detect any irregularities in their transactions, assuring that they would unravel the underlying issues.
According to the Sugar Council, farm-gate sugar prices observed last week ranged from P2,501 to P2,760 per bag, a significant departure from the P3,000 per bag expected by sugarcane farmers. Furthermore, the group noted that a farm-gate price of P2,760 per 50-kilo bag translated to just P55.20 per kilo in the retail market. In reality, retail sugar prices continue to hover between P80 and P100 per kilo.
In an attempt to address the downward spiral of farm-gate prices, the SRA took action on October 12 through Board Resolution No. 2023-159 (dated September 26), deciding to “hold in abeyance all applications of conversion and maintain the classification of all imported sugar as reserved.”
