TWO officials of the Sugar Regulatory Administration (SRA) have noted an abnormal price drop, in some cases as big as P200 in just two weeks, of sugar in the country.
SRA board members Emilio Yulo III and Roland Beltran representing the planters and millers, respectively, are appealing for immediate intervention from the national government before the situation gets worse.
They are calling on the Land Bank of the Philippines (LBP) and other government financial institutions to step in and provide quedan financing “to stop the bleeding.”
“We are afraid that the drastic drop in sugar prices will cause a disastrous effect in the long-term period,” the SRA official
They added “we are still at the height of the milling season and with the good weather, many sugar producers are taking this opportunity to harvest their sugar canes but many are afraid that if the trend of prices collapsing will continue, the producers will not have anything left to even think of planting for the coming crop year.”
Citing the data from Victorias Milling Company, the planters and millers representatives said that sugar price was at the P1,560 to P1,580 per 50 kilo-bag two weeks ago.
For this week, the price is at P1,375 per bag which is just about production cost.
Yulo and Beltran said vast majority of the stakeholders who are small planters and agrarian reform beneficiaries that comprise about 92 percent of sugar producers will not be able to survive this loss, much so in the midst of this national health crisis confronting the country.
“There is no end in sight at the moment but we are hopeful that if the LBP, through the intercession of Agriculture Secretary William Dar, can immediately help address this issue through quedan financing at very minimal interest rates,” they said.
“We might be able to endure this abnormal price drop and still fulfill our responsibility to safeguard food security and improve productivity,” they added.