More sugar groups have appealed for state intervention on the free fall of millgate prices of sugar.
The Sugar Council, comprised of the Confederation of Sugar Producers’ Associations, the National Federation of Sugarcane Planters and the Panay Federation of Sugarcane Farmers, said the government must “adopt measures to stop the decline in farmgate sugar prices and bring retail prices to more reasonable levels.”
The group, which comprises more than half of national sugar output, said the steep price drops threaten farmers’ viability.
The Sugar Council said millgate raw sugar prices per 50-kilogram (LKG) bag dropped from an earlier average high of P2,825 per bag in week ending September 10 to an average of P2,552 in the week ending October 10 and to P2,564 in the week ending of November 19.
In November last year, mill gate averaged at P3,380.56 per LKG.
The group said retail sugar prices have remained high at P80 per kg for raw and P100 per kg for refined.
“The survival of the industry rests on our ability to jointly adopt measures that ensure the viability of all its stakeholders, especially the small farmers. Towards this end, the Sugar Council seeks earnest and genuine solution-seeking dialogue with government and other stakeholders at the earliest possible time,” the group added.
In a separate letter, the Luzon Federation (LuzonFed) of sugar producers have urged the government “to take a direct hand” in ensuring that farmers get a “fair, reasonable and sustainable” returns.
“We submit this concern as our farmers perceive that whatever gains that are derived from these low prices are channeled to entities other than the farmers themselves and inordinate profits are being generated elsewhere at the peril of their livelihood,” said Arnel Toreja, LuzonFed president, in a letter addressed to President Marcos Jr.
