Bacolod City: The National Federation of Sugarcane Planters (NFSP) and the Panay Federation of Sugarcane Farmers (PANAYFED) have urged the government to step in urgently to address the continued fall in sugar and molasses prices, warning that the situation could lead to serious financial hardship and social tension in sugar-growing areas, reports RPN Radio.
In a joint statement issued on Sunday, NFSP president Enrique D. Rojas and PANAYFED president Danilo A. Abelita called for the government to directly purchase excess sugar stocks to ease pressure on the market. They also sought simple and accessible quedan financing through government banks to help farmers cope with the prolonged price slump.
They said the sugar industry’s present condition is the result of several factors coming together, including flawed import decisions, compounded by the impact of natural disasters. They stressed that all sectors of the industry should unite and press the government to immediately provide funds for direct sugar buying and financing support for farmers.
The federations referred to bidding results from last week that showed sugar prices dropping to as low as PHP 2,103 per 50-kilogram bag in some mills in Negros Oriental and Panay. The highest offer recorded was only PHP 2,322.22 per bag at the Hawaiian-Philippine Company.
At the start of the current crop year, sugar prices ranged between PHP 2,250 and PHP 2,350 per bag, levels that were already well below the PHP 2,800 per bag seen in the early part of Crop Year 2024–2025.
Data from the Sugar Regulatory Administration showed that the average price of sugar was PHP 2,350.20 per bag in October and rose slightly to PHP 2,396.04 in November. However, prices fell sharply in the first two weeks of December, with some mills reporting failed bidding rounds due to a lack of buyers or offers that producers found unacceptable.
Rojas and Abelita warned that current prices have fallen below production costs for most sugarcane farmers, particularly agrarian reform beneficiaries working on landholdings of less than two hectares. They said income from sugar is the sole source of livelihood for many growers, and the low prices are steadily stripping them of their earnings.
They added that some small farmers are now thinking of giving up sugarcane farming altogether, as continued losses have made it impossible to sustain their operations. While diversification is often suggested as a solution, the federations pointed out that many small farmers lack the skills, funds and infrastructure needed to shift to other crops or livelihoods.
Without immediate government assistance or protective measures, they cautioned that farming communities in Negros and Panay could sink deeper into poverty, creating conditions that could trigger unrest. They said the industry must act together and seek swift government intervention to prevent a worsening economic crisis in sugar-producing areas if prices continue to fall.
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