Philippines : SRA mulls export, buying program to address declining sugar prices
The Sugar Regulatory Administration (SRA) is considering two strategies to address the falling sugar prices. Industry groups, including UNIFED and SGABI, have urged government intervention as millsite prices dropped to P2,500 per 50-kilogram bag. The SRA is exploring sugar exports or a government buying program to stabilize prices and protect small farmers’ livelihoods.
BACOLOD City – The Sugar Regulatory Administration (SRA) is weighing two strategies to counter the steep drop in sugar prices that has alarmed local producers.
Several sugar industry groups, including the United Sugar Producers Federation of the Philippines (UNIFED), Sugarcane Growers Association of Bukidnon Inc. (SGABI), and Sugarcane Farmers of Bukidnon Multi-Purpose Cooperative (SFBMPC), have appealed to the Department of Agriculture (DA) and the SRA for urgent government intervention.
In a press statement, UNIFED revealed that millsite prices have plummeted to an average of P2,500 per 50-kilogram bag (LKg) in recent weeks, falling significantly short of sugar farmers’ target price of P2,800 per LKg. This drop translates to an average loss of P100 per LKg, further straining farmers’ already tight margins.
SRA Administrator Pablo Luis Azcona, during a press conference on December 5, confirmed the declining trend, citing that raw sugar prices at the Binalbagan-Isabela Sugar Company Inc. (BISCOM) had also dipped to P2,500 per LKg last week.
Azcona announced that the SRA board will convene this month to decide between two possible interventions: exporting sugar or implementing a government buying program.
“We can explore the United States export option, which will significantly reduce our raw sugar inventory,” Azcona said, noting the urgency of preempting further price declines.
Alternatively, the SRA is considering a buying program similar to what was implemented last year. Under this scheme, traders purchase sugar directly from farmers and surrender it to the SRA, which holds the stock in reserve for 90 days before releasing it back into the market.
The affected sugar groups stressed the need for swift government action, highlighting its importance in maintaining fair pricing and protecting small sugarcane farmers.
“The government’s intervention is crucial to safeguard the livelihoods of small farmers who depend on the sugar industry,” the groups stated.
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Source : Panay News
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