The Confederation of Sugar Producers Associations Inc. said it “highly appreciated” the “All-B”, or domestic sugar allocation, under SRA Sugar Order No. 1 for crop year 2021-2022.
“After consultation with sugar producers, almost all stakeholders recommended an all ‘B’ sugar allocation, with all farmers associations/federations present in the consultation calling for a 100 percent ‘B’ sugar allocation for crop year 2021-2022,” the SRA SO 1, signed by Agriculture Secretary William Dar as ex-officio chairperson, SRA administrator Hermenegildo Serafica, Atty. Roland Beltran – Board Member Millers’ representative, and Atty. Emilio Yulo – Board Member Planters’ representative, showed.
“Sugar production for CY 2021-2022, that starts from Sept. 1, 2021 to August 31, 2022, shall be quedanned by the mill companies…The SRA shall undertake assessment of the sugar production and withdrawals trend and…may from time to time adjust the percentage allocation/distribution of the different classes of sugar,” the latest sugar policy added.
The raw sugar supply and demand projections of the SRA Regulation Department showed that, even with a carry-over volume of 158,557 metric tons domestic sugar, the country’s supply situation is better served with an all-B domestic sugar allocation, it said.
This means no allocation for the US quota, or ‘A’ sugar.
CONFED president Raymond Montinola said “this move is highly appreciated as it will help sugar producers meet the rising costs of production and cope with the effects of a ‘back to back’ La Niña.”
The SRA took note that PAGASA announced an emergence of the La Niña phenomenon, either in late October or November this year, and this may result in low sugar recovery.
“Pre-milling estimate for CY 2021-2022 showed raw sugar production at 2,099,720.71 metric tons,” it added.
In a statement Sept. 1, Montinola said production has dropped over the last four years due to the adverse weather, aside from reduction in planted area.
He also noted the increasing prices of fertilizer, fuel and equipment maintenance, as well as labor and other production costs.
He said CONFED is also supportive of the ongoing review of the Sugarcane Industry Roadmap that will likely point to the need for soil amelioration, better cultural practices, and farm mechanization, among others.
“We all need to focus our collective efforts in keeping the industry viable and beneficial for all its stakeholders. We hope that the proposed Sugar Industry Development Council will provide the venue needed for a united, industry-wide effort,” Montinola said.
CONFED is also calling for a more efficient and effective use of the Sugar Industry Development Act (SIDA) fund allocations, and urges all stakeholders to pursue productivity improvement measures with more vigor, the statement said.
The industry should not also forget the labor sector and continue to support its socio-economic development arms…that provide education, livelihood, and skills development opportunities for farm and mill workers’ families, it added. — CGC
