SUGAR prices have plunged by close to P1,000 per bag over the last three weeks. This is a matter of grave concern for producers, who continue to reel from increasing costs of production, three planters groups said.
The reasons can be attributed to a possible spike in sugar smuggling coupled with an increase in sugar inventory due to imports and peaking of milling operations, they added.
The Confederation of Sugarcane Farmers (Confed), National Federation of Sugarcane Planters (NFSP) and Panay Federation of of Sugarcane Farmers (Panayfed), in a joint statement yesterday, November 7, said they reiterate the call for intensified anti-smuggling operations “even as we carefully analyze production and supply: demand forecasts, so that sugar policy – particularly on imports – will not precipitate a further drop in prices.”
The statement was signed by Confed president Aurelio “Bodie” Valderrama, NFSP president Enrique Rojas, and Panayfed president Danilo Abelita.
“We likewise call on all stakeholders to seek ways to address production drops due to unfavorable weather as well as increasing costs of production, with support from government particularly fertilizer and fuel subsidies or other measures to help reduce production costs and improve yields,” the sugar group leaders said.
They added that “these are challenging times for the sugar industry and we must pursue all possible measures to meet the challenges head-on. We can do it if we work in concert with all concerned stakeholders.”*