By Dominique Gabriel G. Bañaga
The Sugar Regulatory Administration (SRA) is currently examining factors behind the unexpectedly low trading prices of sugar during the initial quedan on Friday, September 15.
SRA Administrator Pablo Luis Azcona expressed his concern, as he received reports that sugar prices dipped below the anticipated P3,000 threshold.
While a couple of mills exceeded this mark slightly, some traded sugar for as low as P2,550 to P2,700, which Azcona commented was “quite surprising.”
The SRA is actively investigating what may have contributed to this price downturn during last week’s trading.
“None of the farmers want the low price, so we will focus our investigation on the mills, traders and importers to see if there is some abnormality in their dealings,” Azcona said yesterday.
“Rest assured, we will get to the bottom of this,” he added.
Azcona noted that they had maintained sugar prices at a comfortable level of P3,000 since February of this year, which was equivalent to P60 per kilogram at the farm gate.
Meanwhile, Negros Occidental Governor Eugenio Jose Lacson chimed in, stating that they have always hoped to sustain prices of sugar at P3,000 per bag.
“We are aware of the significant approved importation, but we trust that the SRA, where many officials hail from Negros Occidental, understands the expectations of the sugar planters,” Lacson said.
“I hope prices rebound and continue to average P3,000 per bag,” he added.
Lacson further stated that farmers would be content with the sugar price of P3,000 per bag.
“Sugar farmers typically choose to supply their sugarcane to mills that offer better returns,” Lacson said.
The governor’s statement was in response to reports indicating that certain sugar mills in the province were only buying sugar at P2,600 per bag.
Others set their buying prices above P3,000 per bag.
Lacson further explained that when prices surpass P3,000, there will be extra income for sugar farmers after milling.
However, anything below that mark leaves farmers barely breaking even.
“That is why P3,000 is a satisfactory price for sugar farmers. It ensures they have extra funds in their pockets,” Lacson said.
He also pointed out that the rising costs of petroleum products could lead to higher fertilizer prices, potentially affecting sugar farmers if they have to wait for their sugar proceeds to purchase fertilizers./DGB, WDJ