The United Federation of Sugar Producers (UNIFED) has asked the government to buy locally-produced sugar to encourage traders to increase their buying prices.
Manuel Lamata, UNIFED president, in a statement, asked for a possible state intervention from President Ferdinand Marcos Jr. and Department of Agriculture Secretary Francisco Tiu Laurel Jr. as sugar prices have dropped to P2,500 per 50 kg bag (LKG) in the past two weeks in Negros.
Lamata said prices are even lower at P2,300 per LKG in Bukidnon which are way below the price levels of P3,200 in the same period last year.
Sugar Regulatory Administration millsite monitoring showed composite price of raw sugar as of November 12 or two weeks earlier than UNIFED data, was at P2,658.71 per 50 kg bag, higher by at least P158.71 per LKG.
UNIFED said sugar millgate prices have plunged way below production cost which is currently around P2,500 per LKG.
“This is very disconcerting because mill gate prices are now at P50 per kilo which is way lower than our production costs. Retail prices continue to remain at P80 to P85 per kilo and the farmers are clearly not profiting from the local market prices,” Lamata said.
Lamata added fuel and fertilizer prices are also on the rise.
UNIFED fears local producers may not be able to sustain production for next year’s milling season.
“Please help us and the five million dependents of the sugar industry who will clearly not be enjoying the holidays under this condition and we fear that many workers will be displaced and their dependents go hungry,” Lamata said.
The group said farmers are holding on to government’s pronouncements that sugar prices should not go down below P3,000 per LKG.
Lamata said in a text message government can buy local sugar for at least P2,800 per LKG to encourage traders to increase their buying prices.
“Once government kickstart at that price, hopefully the traders will scramble and buy higher with the present state of fertilizer prices and fuel prices and labor. Our cost of production is hovering at P2,500 (per LKG) more or less. It’s really bad for us now,” Lamata said.
Based on DA’s monitoring of public markets in the National Capital Region, prevailing retail price as of Friday ranges from P72 to P100 per kg for refined sugar, P70 to P96 per kg for washed sugar and P65 to P96 per kg for brown sugar.
