Sugar Council lauds move for direct sugar buying

The Sugar Council today lauded the government’s plan to stabilize domestic sugar prices to help farmers struggling with low millgate prices over the past four months.

“We appreciate the action taken by Pres. Ferdinand R. Marcos, Jr. and Agriculture Secretary Francisco Tiu Laurel, Jr. in allocating funds for the direct purchase of sugar from local producers.

“We hope that with this timely government intervention, prices can improve in the remaining months of the crop year,” said the Sugar Council in a press statement.

The Sugar Council is composed of the Confederation of Sugar Producers’ Associations, Inc. (CONFED), the National Federation of Sugarcane Planters (NFSP), and the Panay Federation of Sugarcane Farmers (PANAYFED), led by their Presidents Aurelio Gerardo J. Valderrama, Jr. (CONFED), Enrique D. Rojas (NFSP) and Danilo A. Abelita (PANAYFED). The three federations represent majority of national sugar production.

“We thank Sec. Francisco Tiu Laurel, Jr. for inviting the Sugar Council and consulting our federations in crafting proposals to address the industry’s pressing concerns.” The Council, it will be recalled, submitted its proposal to the Agriculture Secretary in a meeting last January 9, 2024, during which the Secretary readily expressed willingness to consider the group’s recommendations.

“Our federations look forward to more of this consultative and participatory decision-making process from the DA and SRA, as practiced in past administrations,” the Sugar Council added.

Sugar farmers hope to see sugar prices increase from a current low of PhP2,400 per bag to levels that will allow them to recover costs and provide for the following year’s crop. Even as the implementing mechanics for the government plan are still being threshed out, prices of PhP2,700 to PhP2,800 per bag have been been floated in industry circles. The Sugar Council, however, cautions against “hoarding” of sugar quedans in anticipation of higher prices resulting from the government measure.

“In discussions with industry stakeholders,” the Council explained, “it was stressed that this direct buying should only apply to newly-milled sugar covered by an SRA Sugar Order, and not to past weeks’ production,” the Sugar Council pointed out.

“This is consistent with government’s intent to ensure fair treatment for all, especially the small sugar farmers who cannot afford to hold on to their quedans to wait for better prices. The program cannot allow the better-financed producers to benefit more than those with less resources,” the group explained.*