Friday, May 09, 2008 Sugar planters decry drop in sugar prices
SUGARCANE planters from Negros and neighboring sugar-producing provinces have decried the rapid drop of approximately P100 per LKg (50 kilogram bag) in domestic sugar prices in just a short period.
From a high of P 1,250 per LKg last April 24, domestic sugar prices dipped to about P 1,150 per LKg last May 2.
Officers of the Association of Productive Planters of Negros Occidental Inc. (APP-Negros) have voiced out their concern to National Federation of Sugarcane Planters Inc. (NFSP) president Enrique Rojas. With the increasing prices of farm inputs such as fertilizer and fuel, they hoped that sugar prices should have remained at a high level so they can somehow recover their losses when sugar prices were low.
Rojas explained "the untimely conversion of reserve sugar into domestic sugar is one of the major reasons for the sudden drop in sugar prices. The Sugar Regulatory Administration did not coordinate with the Sugar Alliance of the Philippines in issuing the conversion as previously agreed upon between the Sugar Alliance and SRA in matters involving sugar allocation and conversion."
He added that SRA acted prematurely in issuing last April 16 Sugar Order 11, series of 2007-2008, titled "Conversion of 'C' Sugar Produced during the Month of December 2007 to 'B' Sugar".
Planters contended that SRA should have waited until June to convert the reserve sugar. By middle of May or June, most mills would have stopped operation; they will operate again only on September. "That is the period from June to September when reserve sugar should be converted into domestic sugar," the producers emphasized.
Small marginal planters that make up 80 percent of the number of sugar producers wondered if the SRA is concerned about the welfare of the planters. "The prices of all commodities are increasing while it seems that only sugar prices are not increasing correspondingly. When sugar prices are at a level when planters can get a fair return on their investment, SRA should allow the planters to recover some of their losses."
At present, it is the traders and retailers who profit more from the sugar than the producers themselves. Rojas enjoined the SRA to allow market forces to dictate sugar prices, so planters can have the opportunity to get a fair return on their investments.
"The conversion of reserve sugar to domestic sugar should be done only at the most appropriate time, with proper coordination from the Sugar Alliance of the Philippines," Rojas said.
