By Dominique Gabriel G. Bañaga
Negros Occidental 3rd District Congressman Jose Francisco Benitez urged the Sugar Regulatory Administration (SRA) to clarify the reasons behind the high prices of sugar in local markets despite the importation of the commodity.
“We want to see the justification why, but I suspect there is a process and a gap between mill gate prices and consumer price that needs to be looked up why the price management system of SRA is still lacking in terms of effectivity,” Benitez said.
He added that he doesn’t necessarily think the prices have unabated as they usually go through a process where they calculate how much sugar will be produced and needed by the local market, particularly by the industrial users.
While acknowledging that the situation may not be entirely unchecked, Benitez expressed concern that the high price of sugar persists in the market, despite regular and continuous importation, which theoretically should lead to price reductions in the market rather than just the mill gate price.
More than 85 percent of the country’s sugar farmers are small planters, with an average farm size of less than five hectares.
The majority of the country’s sugar mills and refineries are located in Negros./DGB, WDJ