SRA rewards traders backing local farmers
The Sugar Regulatory Administration (SRA) has conceived of a plan to encourage conscientious sugar traders to support local planters by buying local produce at premium prices in exchange for assured allocations in future government importations.
Under Sugar Order No. 2, the SRA allows traders to purchase 300,000 metric tons (MT) of local raw sugar in exchange for future allocations, the first voluntary limited volume purchase of local raw sugar, which is expected to stabilize farm-gate prices while “ensuring fair and reasonable retail prices.”
When asked if the SRA will implement this moving forward, SRA administrator Pablo Luis Azcona said, “most probably as we need to support those who support the local farmers with a good farm-gate/millgate price.”
The agency said it was deemed necessary to adopt “additional, responsive and preemptive measures” by way of voluntary limited volume purchase of domestic raw sugar and will be reclassified as “C” or reserved sugar for a specific period.
This is “to maintain a balanced supply and demand of sugar for domestic consumption while ensuring reasonable and stable prices,” it said.
In good standing
The voluntary purchase is open to, among others, farmers, farmer’s groups, farmer’s cooperatives, farmer’s associations, sugar millers, manufacturers, and beverage makers who are licensed local or international sugar traders in good standing.
Those interested should not have any pending cases with the SRA and should have updated and paid registration/license fees, submitted reportorial requirements, and be legally allowed to engage in sugar trading activities.
The order covers 300,000 MT of raw sugar, applicable to planters’ shares covered by quedans for crop year 2023-2024.
The volume is proportioned as follows: up to 60,000 MT for sugar covered by quedans whose date of issuance is on or before the week ending Jan. 28 and a maximum of 240,000 MT for sugar whose issuance date is on or after the week ending Feb. 3.
First come, first served
The SRA head holds the discretion to temporarily or permanently stop the further implementation of the voluntary purchase at any time upon the issuance of a notice effective the next Monday after the date of issuance of the same notice.
Participation is on a “first-come first-served basis,” as long as complete requirements have been submitted and the quedans to be reclassified have been surrendered.
Eligible participants who have complied with the conditions set forth by the SRA will be given priority in the future program for importation authorized by the government, depending on the volume of local raw sugar imported at a ratio of 1.5:1 (locally produced raw sugar purchased: imported sugar).
Data from the SRA showed that mill site prices of sugar averaged P2,566.40 per 50-kilo bag as of Feb. 14, a reduction of 14.76 percent from P3,010.62 per 50-kilo bag in the same period a year ago.
In Metro Manila markets, retail prices have decreased as well. Based on the Department of Agriculture’s price monitoring, refined sugar is sold from P72 to P100 per kilogram as of Friday, lower than P87 to P110 per kg a year before.
Source Link: https://newsinfo.inquirer.net/1916350/sra-rewards-traders-backing-local-farmers
Recommended for you
