By Dominique Gabriel G. Bañaga
A group of sugar manufacturers in Negros Occidental is calling on the national government for a dialogue, as well as to act on the current inflation rate which is now hurting the sugar industry.
In a statement issued by the Sugarcane Producers’ Federation — comprising the Confederation of Sugar Producers, National Federation of Sugarcane Planters, and the Panay Federation of Sugarcane Farmers Inc. — the high inflation rate has not only hurt the Filipino consumers, but also the local farmers who are now reeling from escalating costs of production.
“We are concerned that the reportedly ‘very high inflation rate of sugar, confectioneries and desserts’ is seen as a major contributor to inflation and that measures must be taken to stabilize not only the supply but the prices of sugar in the domestic market,” the group said.
They pointed out that it seems to be the rationale for the urgent minimum access volume importation plan for 64,050 metric tons.
The group stated that they had recommended as early as October of this year the calibrated importation of 300,000 metric tons of sugar — which was scaled down by the Sugar Regulatory Administration (SRA) to 150,000 metric tons — to address both the supply and price concerns.
Following an early and brief spike, mill gate prices have already dropped by as much as 26 percent over the last 10 to 11 weeks, from P2,885 to P3,900 per bag.
On the other hand, retail prices have not dropped significantly from P95 to P105 per kilo over the same period.
The current refined sugar inventory, based on SRA data, is higher by 56.66 percent, compared to the same period (September 1 to December 11) last year, due to higher refinery output and previous import balances. That means there is adequate supply at this time to meet current needs.
“There is no urgent need for importation, especially during peak milling season,” the group pointed out.
They further stated that there is also no reason why retail prices should remain disproportionately high when mill gate prices have already dropped.
“We are hopeful that, despite the precipitous drop in mill gate prices, producers will remain viable in the face of increasing costs of production and the challenges expected in the coming year,” the group said.
They further added that even as they urge the government to engage in an earnest dialogue, they would like to reiterate their call, at this time, to the Department of Agriculture, the SRA, and the Department of Trade and Industry to guard against excessive retail prices that are not in synch with prevailing mill gate prices.
“Producers sadly get the blame but do not benefit from excessive retail prices, while consumers and end-users suffer when retail prices are unreasonably high,” the group said./DGB, WDJ