• GILBERT P. BAYORAN
The Sugar Regulatory Administration (SRA) is eyeing to regulate the supply of sugar, which may help address in the sharp decline of millgate prices, which is being blamed by some sugar producers on unscrupulous traders.
“That is the only tool that we have,” Administrator Pablo Luis Azcona said in a press briefing in Bacolod City.
Azcona reported that last week’s lowest price recorded at Biscom sugar mill was P2,502 at 50-kilo per bag, compared to production cost of small farmers at P2,400 per bag.
SRA has no role in trading or pricing sugar, as stipulated in its charter.
“It’s a private sector controlled market,” Azcona said.
Sugar producers are seeking government intervention in arresting the decline in the price of locally produced sugar.
Cornelio Toreja, president of the Luzon Federation of Sugarcane Growers, in a letter to Azcona, said that while official figures show stability in supply, the prices have decreased considerably, while retail market prices show no appreciable and proportionate decline.
“This shows a clear manipulation in the supply and demand chain, which necessitates a firm and decisive government hand,” he added.
Manuel Antonio Zubiri, president of the Sugarcane Growers Association of Bukidnon Inc., said the continued manipulation of sugar prices and uncertainty in covering production costs jeopardize the viability of the local sugar industry.
“Since the start of the milling season, prices have been erratically (fluctuating) contrary to the supply and demand figures, which raised suspicions that somebody is profiting from recent events,” according to Manuel Lamata, president of the United Sugar Producers Federation.
Azcona said that the SRA board has also started making some drafts to address the problems, and will go through all the necessary consultations and gather suggestions from everybody.
The Sugar Board has to decide what programs to be activated before prices go uncontrollably low, he added.
Other options being looked into by the SRA include sugar exportation and for the government to buy sugar of farmers, which was explored last year, but did not happen, Azcona admitted.
He added that SRA is open for a dialog to sugar farmer federations to get their inputs. | GB
