By Paulo Loreto Lim

Former Negros Occidental Governor Rafael Coscolluela echoed fears recently expressed by local sugar planters and Negros Occidental third district Rep. Alfredo Benitez of possible manipulations behind falling “mill gate prices.”

“I tend to suspect that there is [a] cartel,” he said.

Both the congressman and the Negros Farmworkers and Agrarian Reform Beneficiaries Producers Federation (NeFARB) said the matter needed to be investigated, with Benitez promising to file a resolution calling for a congressional inquiry into the issue.

“I hope Congressman Benitez will get useful information,” said the former governor.

However, Coscolluela also suggested the Department of Trade and Industry (DTI) needs to take “serious action” as well.

“They set the suggested retail price based on the ‘mill gate’ prices,” he explained.

Recently, Sadrico Cornelio of NeFARB claimed the “substantial drop” in the price of sugar may lead to a sugar crisis, noting, as “mill gate prices” fall, retail prices remain high.

“Mill gate” price, sometimes referred to as a “factory gate” price, refers to the actual cost of a product, comprised of elements including labor and energy costs, but free of any markup.

Meanwhile, Coscolluela said he is preparing a memorandum for Negros Occidental Governor Alfredo Marañon, Jr. to prepare for a sugar crisis.

“Low prices of sugar and the rising cost of production [will] force us to reduce the cost of production,” he said. “Every time we see cost reduction measures [adopted], the first to suffer will be the farm workers.”/PLL, WDJ