Higher mill gate prices ‘big relief’ to sugarcane planters

Higher mill gate prices ‘big relief’ to sugarcane planters

by Poster1PROVINCE NEWSPosted on Comments are Disabled

BACOLOD CITY – Higher mill gate prices of sugar have brought “big relief” to farmers amid the challenges posed by the drought due to El Niño to sugarcane plantations. After hitting PHP2,600 per 50-kg. bag in February, prices went even higher, breaching the PHP2,800 level by the middle of March. The biggest independent sugar group in the country, the United Sugar Producers Federation of the Philippines (UNIFED), said in a statement on Tuesday that they are thankful that “prices have gone up to the level that farmers are comfortable with.” “Today’s prices are a big relief to planters who are also facing the problem brought about by El Niño,” said UNIFED president Manuel Lamata, based in this city. He acknowledged Department of Agriculture (DA) Secretary Francisco Tiu Laurel Jr. and Sugar Regulatory Administration (DA) chief Pablo Luis Azcona for their efforts that resulted in higher mill gate prices. “We owe a lot to Secretary Laurel and Administrator Azcona, and also our planters’ representative to the SRA Board, Dave Sanson, who gave solutions to our problem on low mill gate prices at the start of the milling season,” he added. In Negros Occidental, the country’s sugar capital, bidding prices in at least seven sugar mills ranged from PHP2,801 to PHP2,856 per 50-kg. bag during the week ending March 10. Lamata noted that when UNIFED first came out with an appeal, the “mill gate prices then was at PHP2,400 per 50-kg. bag.” This was not even a break-even point for the farmers, particularly those with smaller plantations, as the costs of farm inputs were also high at that time. We immediately sought the DA and SRA intervention, and thankfully, they responded with the issuance of Sugar Order (SO) No. 2,” he added. SO2 allows traders to purchase 300,000 metric tons of local raw sugar in exchange for future allocations, seen to stabilize mill gate prices while “ensuring fair and reasonable retail prices.” “Thereafter, prices started going up to what it is now, PHP2,850 per 50-kg. bag on average. I hope that the recent sugar order will be institutionalized for succeeding crop years to ensure steady and competitive prices for our mill gate produce,” Lamata said.   Source: PNA

DA, SRA, stakeholders discuss plan to buy sugar from local farmers

DA, SRA, stakeholders discuss plan to buy sugar from local farmers

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BACOLOD CITY –The Department of Agriculture (DA) and Sugar Regulatory Administration (SRA) have convened sugar industry leaders to tackle government’s plan to buy sugar directly from the farmers at a premium price amid the continuing low farmgate prices, usually between PHP2,400 and PHP2,500 per 50-kilo bag. In a statement on Sunday, SRA Administrator Pablo Azcona said that he, Agriculture Secretary Francisco Tiu Laurel Jr. and Philippine International Trading Corp. president and chief executive officer Undersecretary Emmie Liza Perez-Chiong met with sugar federation leaders, millers, farmers and traders at the DA central office in Quezon City on Friday. “(It was) a momentous event as the last time industry stakeholders sat down together was probably eight years ago. We hope this will be the beginning of a unified industry that openly communicates and supports each other,” Azcona said. Those who attended the meeting were leaders of the United Sugar Producers Federation, Confederation of Sugar Producers Association Inc., National Federation of Sugarcane Planters, Luzon Federation of Sugarcane Growers and Associations, Panay Federation of Sugarcane Farmers Inc., Philippine Sugar Millers Association, Philippine Association of Sugar Refiners, and groups of sugar farmers and traders. They helped in crafting the mechanics of the government participating in buying the sugar produce, the SRA chief said. “We also discussed steps to be taken to further enhance productivity and profitability, ensure stability of sugar supply for consumers and industrial users, better retail prices and keeping in mind that the sugar farmer is also a retail consumer,” he added. Azcona did not provide details yet on the buying schedule and the purchase price. He noted that “bringing all our sugar leaders to sit in one table and discuss together the state of the industry has not happened in such a long time.” “This is a sign that the industry is united in finding a solution to improve the plight of the sugar farmer, who, in reality, is the most important link in the sugar supply chain. Without the farmer, the mills have nothing to grind, the traders have nothing to trade and the consumers and industries will have no sugar for their needs,” the SRA chief said. In a press briefing here last month, Azcona disclosed the government’s plan to buy sugar directly from farmers to prop up farmgate prices and lower retail prices at the same time after the sugar producers’ federations sought intervention from Laurel and President Ferdinand R. Marcos Jr. as the farmgate prices of sugar plummeted since the start of the milling season in September. The price of PHP3,000 per 50-kilo bag is considered a fair market price, but farmgate prices are still only between PHP2,400 and PHP2,500, particularly in Negros, the country’s sugar capital. Azcona acknowledged the continued trust in and support of the President and the DA chief to the SRA, adding that he is optimistic that “the cooperation from all industry stakeholders will be the key towards a positive growth of the industry.” “I thank President Marcos and Secretary Laurel for keeping their commitment to help the industry, particularly the sugar farmers,” he added.   Source: PNA