Sugar farmers get access to Landbank credit facility

The Sugar Regulatory Administration (SRA) and the Land Bank of the Philippines (LBP) agreed to provide quedan financing and socialized credit programs to sugarcane farmers amid the continued decline in prices.

SRA administrator Hermenegildo Serafica and Landbank president Alex Buenaventura agreed on the terms of the financing to be made available to sugarcane farmers.

“Both officials agreed in principle, subject to approval by the LBP Board, to provide quedan financing using Landbank’s regular fund,” SRA said in a statement.

This will have an interest rate of six percent for sugarcane farmers cultivating farms with 250 hectares and below and 7.5 percent interest rate for farmers having more than 250 hectares with no charges on processing fees.

Both parties also agreed to apply not more than two percent interest rate for the socialized credit program.

SRA and Landbank are now finalizing the other guidelines to allow farmers to have immediate access to the credit facility.

“We want it as soon as possible so they will not be forced to sell their sugar quedans at very low prices,” SRA said.

Latest data for crop year 2017 to 2018, which started in September, showed that prices at the mill gate level went down 26 percent to P1,190 per 50-kilogram bag as of Nov. 5.

Wholesale prices also declined 21 percent to P1,500 per 50-kg bag for raw sugar, 18 percent to P1,700 for washed sugar and 15 percent to P2,000 for refined sugar.

The same goes for retail prices which went down to P2 to P3 per kilogram for raw, washed and refined sugar forms.