The National Federation of Sugarcane Planters (NFSP) attributes the decline in local sugar prices to the prevalence and preference for imported sugar, diminishing the demand for domestic raw sugar, reported Manila Times.
NFSP President Enrique Rojas voiced concern, highlighting the current rates of raw sugar ranging from P2,400 to P2,500 per 50-kilogram bag, considerably lower than the previous crop year’s rate exceeding P3,000 per bag.
Rojas underscored the need for government intervention to address the issue of over-importation, emphasizing the adverse impact on farmers enduring low sugar prices. According to Sugar Regulatory Administration (SRA) data cited by Rojas, the withdrawal ratio between imported and domestic sugar stands at almost 70 percent to 30 percent in favor of imported sugar.
The NFSP leader attributed the decline in sugar prices to the excessive and untimely influx of imports during the milling season, affecting local sugar farmers. Rojas revealed that despite recommending a conservative figure of 250,000 to 300,000 metric tons (MT) for sugar imports, the SRA opted for 440,000 MT, supplemented by nearly 64,000 MT under the minimum access volume (MAV) and an additional 150,000 MT towards the end of the last crop year.
In response to the challenging situation, the NFSP and other industry stakeholders sought the assistance of Agriculture Secretary Francisco Tiu Laurel Jr. to address the declining sugar prices confronting the sector. Rojas emphasized the urgency of protecting small farmers, the majority of whom are NFSP planter members, from the repercussions of the alarming price levels.
Rojas expressed that Secretary Laurel, understanding the predicament of sugar farmers as a businessman himself, assured the NFSP of proposing concrete measures to be discussed with industry leaders and the Sugar Regulatory Administration in their upcoming meeting.
