Cut sugar allocation for domestic market

BACOLOD CITY, Philippines – The National Federation of Sugarcane Planters (NFSP) has requested the Sugar Regulatory Administration (SRA) to reduce the present allocation of “B” (domestic) sugar, citing a big drop in prices in the local market.

In his letter to SRA administrator Ma. Regina Bautista-Martin last November 28, NFSP president Enrique Rojas said the federation reiterated its recommendation to the SRA during the meeting of the Sugar Alliance of the Philippines last November 16.

The reduction in the present allocation for “B” sugar would decongest the domestic market and hopefully improve sugar prices for the benefit of small farmers, who comprise more than 80 percent of the sugar producers in the country, Rojas said.

Rojas said NFSP’s planter-members have complained that domestic sugar prices have plunged from an average of P1,300 per LKg at the start of milling, to an average of only P1,155 in the bidding last November 11.

What was worse was that, despite the drop in mill-gate prices that were detrimental to producers, the retail prices of sugar remained high at P39 to P40 per kilo for raw sugar and P46 to P48 per kilo for refined sugar, he said.

Rojas said that when NFSP made the recommendation, only 10 out of 28 mills all over the country were operating. Now, almost all mills in the country are already operating, he said.

“While we are expecting a drop in production in the long run, we also expect a temporary surge in production due to the operation of almost all mills in the country, said Rojas.

The consequent temporary surge in production is expected to further depress present domestic sugar prices, considering that the increase in production is too much for the domestic market to absorb, he said.

During the later part of the milling season when demand and consumption would have balanced out, the NFSP can always re-assess the situation and then take the necessary remedial measures, said Rojas.