- GILBERT P. BAYORAN
The Sugar Regulatory Administration (SRA) said Thursday, Dec. 21, that the government is seriously considering the purchase of sugar directly from the farmers for a higher price, and sell it to consumers at a lower price, amid the sustained plummeting of its prices.
In a press briefing in Bacolod City, SRA Administrator Pablo Luis Azcona assured sugar farmers that President Ferdinand Marcos Jr. is aware of the situation in the sugar industry, and is taking steps on how to help the farmers and industry as a whole.
The intervention of the President has been sought by various sugar federations in the country, which also called for a united action to address urgent critical issues faced by the industry.
“The government has always been looking at the idea of purchasing sugar directly from the farmers,“ Azcona said, adding that they are now checking its legality, and what government agencies to involve for implementation as soon as possible.
Sugar importation has been blamed by farmers for the plummeting millgate prices of sugar, from as high as more than P3,000 in previous years, to as low as P2,300 to P2,500 per 50-kilo bag at present.
Azcona explained that all the importation program was based on available data, at that certain time, stressing that importation was not done in haste, or without basis.
“The only problem that we’ve seen so far, is the historical numbers for demand, or withdrawal that have actually dropped significantly, with 20 percent in raw sugar, and 11.5 percent in refined sugar,” the SRA head said.
Based on the current demand figures, there is no apparent need to import sugar, he added.
However, “we will only know our final production and demand numbers after the milling season.”
Azcona said that the drop in millgate prices of sugar is usually based on “market forces”.
“If there is an oversupply, the retail price should have dropped also. How come it is not dropping. The only people involved in the trading side can explain it. The only thing that we can do now, is to assure the consumers of a stable supply, especially this December,” he added.
On the alleged manipulation of sugar prices, the SRA chief said he was told by traders that the problem is from wholesale to retail, and that sugar is being treated as a product, not a commodity anymore. | GB
