Philippines: The United Sugar Producers Federation (Unifed) has urged the government to step in and purchase sugar directly, then sell it to consumers to remove middlemen from the supply chain. The group believes this move will stabilize sugar prices and prevent further declines in mill rates.
Manuel Lamata, the Unifed president, accused some traders of manipulating sugar prices to gain significant profits, hurting both farmers and consumers. “Retail prices do not reflect the drop in mill prices and might even increase as holiday demand rises,” he warned.
Lamata stressed the need for intervention from the Department of Agriculture (DA) and the Sugar Regulatory Administration (SRA). “We need their help to keep sugar prices at a reasonable level and minimize losses, especially with issues like reduced sugar purity caused by the long drought,” he said.
Although he did not specify what he considers a “comfortable” price level, Lamata noted that mill prices dropped by an average of ₱100 per 50-kilogram bag (LKG) last week. SRA’s mill site data showed that as of November 3, the composite price of raw sugar was ₱2,698.82 per LKG, with Unifed reporting a further dip to ₱2,500 per LKG on Thursday.
Lamata encouraged farmers to hold onto their sugar stocks until prices stabilize, acknowledging the difficulty this poses, especially for small-scale farmers dependent on weekly income. “We all may need to tighten our belts to avoid being exploited by unscrupulous traders,” he added.
Unifed highlighted that prices have been volatile since the start of the milling season, despite steady supply and demand figures. Lamata expressed concern for small farmers, who make up over 80% of the industry and have already faced increased production costs due to the drought.
The Department of Agriculture’s recent market monitoring showed that retail sugar prices in Metro Manila ranged from ₱74 to ₱90 per kilogram for refined sugar, ₱67 to ₱85 for washed sugar, and ₱65 to ₱85 for brown sugar. Lamata warned that without action, small farmers could face serious hardships during what should be a season of improved earnings.
