Sugarcane planters said mill gate prices of the commodity have dropped by almost 10 percent in most mills while prices at retail have increase ahead of the arrival starting next month of 200,000 metric tons (MT) of imports.
Bernardino Yulo, representing millers, said as of end-January, raw sugar prices stood at P2,110 per 50 kilogram bag (Lkg) in Victorias Milling Corp. (VMC); P1,981 in APSSI Hawaian and AHSSI Hawaian; P1,973 in First Farmers; P1,920 in Lopez Sugar Central; P1,898 in AALCPI-URC La Carlota; P1,885 in BIPA-Biscom and P1,865 in SONEDCO (Kabilog).
Yulo said two days after the Sugar Regulatory Administration (SRA) released on February 4 Sugar Order No. 3 (SO3) allowing the importation of 200,000 metric tons (MT) of sugar, prices dropped to P1,880 in VMC, or a difference of P230 per Lkg.
In other sugar mills, prices were down as well: BIPA-Biscom, by P150, ALCCPI-URC La Carlota, P145; Lopez Sugar Central, P140; SONEDCO (Kabilog) , P130; AAHSI-Hawaian and First Farmers, P121 and; APSSI-Hawaian, P99.12.
“Small farmers are barely surviving due to the high cost of farm inputs, particularly fertilizers and fuel that have been increasing steadily each week. (Farmers) will suffer more because of this drop in sugar prices,” Yulo said.
The importation is meant to stabilize its rising retail cost and the expected low productivity in sugar producing areas affected by Typhoon Odette.
The SO3 said 100,000 MT will be for standard grade refined sugar while the rest will be for bottler’s grade refined sugar.
For industrial users importing standard refined sugar, 25 percent of the volume must arrive in the Philippines no sooner than March 1 with the remaining 75 percent to arrive no sooner than May 1.
For the bottlers’ grade refined sugar, 75 percent of the volume should arrive in the Philippines no sooner than March 1 and the remaining 25 percent no sooner than May 1.
Meanwhile, Senate Majority Leader Juan Miguel Zubiri yesterday called on the government to call off its planned importation of sugar.
“Now that sugar prices are up because of rising farm input costs, the Department of Agriculture (DA) and SRA are coming out with an importation program to stabilize prices. It is ironic that importation is their answer to our farmers’ pleas to mitigate skyrocketing fertilizer prices. This will only sink our farmers toward in more hardships and saddle them with more debts,” Zubiri said.
He added he will ask the Senate committee on agriculture to conduct an investigation on the matter especially that DA officials committed during the last budget deliberations they will not import sugar during harvest and milling seasons.
DA’s monitoring of 13 public markets as of yesterday showed the prevailing retail prices of sugar went up from last month by P5 for refined sugar now at P65 per kg from P60 and brown sugar to P50 from P45. Washed sugar is now at P55 from P48, up P7. – Raymond Africa
