Govt allocates P5B for direct purchase of sugar
BACOLOD CITY: The United Sugar Producers Federation of the Philippines (Unifed) has urged the sugar planters in the country not to sell their sugar to private companies at low prices as the government has allocated an initial budget of P5 billion to directly purchase sugar from farmers at a premium price.
“To my fellow sugar planters, do not sell your sugar yet at this low price. Wait a little more because our President has stepped in to help the sugar farmers and thank you for never doubting his concern for our industry,” Unifed president Manuel Lamata said in a statement.
Lamata said President Ferdinand Marcos Jr. has approved an initial P5 billion for the purchase of sugar directly from the planters.
Sugar industry stakeholders have earlier called for government intervention to narrow the gap between sugar farmgate and retail prices.
Unifed said that this gap has widened since the start of the milling season in September.
“We are very grateful to the President, to Agriculture Secretary Francisco Tiu Laurel Jr., and Sugar Regulatory Administrator Pablo Azcona for heeding our plea for government intervention on the plummeting sugar millgate prices,” Lamata added.
Unifed, through Lamata, appealed to Marcos on Dec. 11, 2023 amid the continuous drop in sugar prices since the start of the milling season.
“We are also very thankful to Secretary Kiko Laurel and the SRA for their prompt action to look into and address the issues of the sugar industry,” Lamata said, adding that Unifed took part in the recent discussion of the mechanics in implementing the buy-direct plan from the farmers at a premium price.
Lamata also thanked all the members of Unifed who never wavered in their trust in the present administration, assuring them as well that “Unifed will always look after the welfare of its members and the industry as a whole.”
He said that trading prices for raw sugar have declined to P2,300 to P2,500 per 50-kilogram bag, which is below the production cost for producers.
In an apparent move to unite the sugar industry, the leaders of various groups comprising the industry sat down over the weekend to draw up measures and mechanics as the government gave its nod to intervene by buying sugar directly from the farmers at a premium price.
SRA Administrator Pablo Azcona said this is “a momentous event as the last time industry stakeholders sat down together was probably eight years ago. We hope this will be the beginning of a unified industry that openly communicates and supports each other.”
Azcona also thanked President Marcos and Agriculture Secretary Francisco Tiu Laurel Jr. for “keeping their commitment to help the industry, particularly the sugar farmers.”
Last Friday, the Department of Agriculture, the Sugar Regulatory Administration (SRA) and the Philippine International Trading Corp. invited all sugar federation leaders, millers, farmers and traders in a meeting at the DA’s office to discuss how to go about helping farmers out through direct buying of sugar at a premium price following the drop in sugar prices since the start of the milling season.
All federations, sugar farmers and traders helped in crafting the mechanics of government participating in buying the sugar produce.