Sugar planters warn profiteers could be behind decline in millgate prices
SUGAR producers said millgate prices for their cane have declined since the start of the milling season, with the United Sugar Producers Federation (UNIFED) warning of possible profiteering by traders.
“We fear that this continued downtrend will have a severe impact on our small farmers which comprise more than 80% of the industry producers who are looking forward to a better holiday season especially with the increase in production inputs due to the long drought,” UNIFED President Manuel R. Lamata said in a statement.
UNIFED said prices averaged P2,500 per bag of sugar last week, compared to the 2,800 per bag farmers had been hoping for.
“Since the start of the milling season, prices have been erratically (fluctuating) contrary to the supply and demand figures, which raised suspicions that somebody is profiting from recent events,” Mr. Lamata added.
He said that despite the drop in millgate prices, the retail price for sugar remained stable.
He added that farmers should hold on to their sugar until prices stabilize.
“We may all need to tighten our belts so we will not be abused by these traders,” Mr. Lamata said.
The group also called on the Department of Agriculture and the Sugar Regulatory Administration to investigate the drop in millgate prices.
“We need the DA and SRA’s intervention to prop-up sugar prices at a comfortable level to prevent further losses especially now when there is also the issue of sugar purity, which has fallen due to the long drought,” he added.
The SRA has estimated that sugar production this crop year will drop 7.2% to 1.78 million metric tons.
He said the government could also move to buy sugar to stabilize prices.
“We will only sell directly to the government and they can sell directly to the people, eliminating these traders until prices stabilize,” Mr. Lamata said.
Low millgate prices were also reported during the previous crop year, prompting the government to allocate about P5 billion for the purchase of sugar directly from farmers. — Adrian H. Halili
