By Dominique Gabriel G. Bañaga
Planters groups fear that sugar prices will drop uncontrollably after the Sugar Regulatory Administration (SRA) recently approved Sugar Order No. 6 (SO6) which would allow the importation of 440,000 metric tons (MT) of sugar.
In a joint statement signed by the National Federation of Sugarcane Planters (NFSP) and Panay Federation of Sugarcane Farmers (PanayFed), they believed the 440,000 MT volume is more than what is needed in the domestic market.
Both NFSP and PanayFed are deeply concerned that the oversupply, coupled with the ill-timed arrival of imported sugar, will lead to a downward slide in mill gate sugar prices.
According to the SRA’s SO6, the arrival of the imported 440,000 MT of refined sugar has been broken down into three separate schedules.
The first 100,000 MT will arrive at the soonest possible time, followed by another 100,000 MT before April 1 of this year.
The remaining 240,000 MT will arrive not earlier than April 1.
Previously, NFSP, PanayFed and the Confederation of Sugar Producers Association had forwarded a recommendation to the SRA to only import 350,000 MT of sugar.
The groups said that last week’s mill gate sugar prices have already decreased by as much as P200 to P300 per bag compared to the price in previous weeks.
With the arrival of the first tranche, they are lamenting a further drop in the price of mill gate sugar prices, which they pointed out as excessive, since a large majority of planters are still harvesting and milling their canes.
Both NFSP and Panay Fed also pointed out that SRA seems to have waived its regulatory powers in favor of the Department of Agriculture (DA).
“In the approval of import applications and the allocation of import volumes, the SRA’s function has become merely recommendatory. The DA has the final decision on such vital importation matters,” they emphasized.
“There seems to be no provision in the sugar order which ensures transparency in the approval of import applications and fairness in the allocation of importation volume,” the group added.
NFSP and PanayFed reiterated their stand on the proposed importation volume and arrivals should only be made after the milling season.
They are pushing that the importation program should be open to all eligible importers, including producer groups, and that all importation volume among eligible importers should be transparent and fair.
“Sugarcane farmers are still suffering from the high cost of fertilizer, fuel and other farm inputs,” they said.
“The expected drop in mill gate sugar prices due to this excessive and ill-timed arrival of imported sugar will cause more financial distress to sugarcane farmers, particularly the marginal farmers who rely solely on sugar for their livelihood,” the group added./DGB, WDJ