The Asociacion de Agricultores de La Carlota y Pontevedra Inc. (AALCPI) has joined the call for the Sugar Regulatory Administration (SRA) to scrap Sugar Order No. 3, which grants the importation of 200,000 metric tons of sugar.
AALCPI, the biggest non-affiliated sugar planters group with over 10,000 members, said in a press release Wednesday, February 9, that the importation order while in the peak of milling season “will have a disastrous effect in the sugar industry, particularly among the small sugar producers.”
AALCPI President Roberto Cuenca scored SRA Administrator Hermenegildo Serafica for issuing such an order “without proper consultation with industry stakeholders. We were never informed and yet he knows we are the biggest group in so far as membership is concerned, and mostly of small sugar farmers.”
“He (Serafica) also knows we are in the midst of milling season and any importation order now will have a ripple effect,” Cuenca said, in agreement with other sugar federations that said the issuance of the sugar order is “ill-timed.”
Cuenca also slammed Serafica for justifying that the need to import sugar now is to ensure balance between supply and demand and stabilizing prices, “when he has not even addressed our immediate concern of high cost of farm inputs that we have brought to his attention since last year.”
Sugar producers have been complaining about the soaring cost of industrial fertilizers that have tripled in less than two years, compounded with the rising cost of fuel, both of which are integral in the survival of the industry.
“Administrator Serafica should take time to consult small farmers so he can personally hear their appeal as many could not afford to even replant for the next crop year if this situation continues,” Cuenca said, adding that what is perceived as “high cost of sugar simply off-sets high cost of farm inputs.”
AALCPI said the volume of importation is “too big and definitely, should not have been granted at this time.”
Cuenca said that they were informed that most producers SRA consulted agreed to an importation order but in tranches of 50,000 metric tons and implemented by the closing of the milling season.
“Right now, we have enough supply, milling is ongoing so what balancing act between supply and demand is Serafica talking about,” he said, adding that if indeed there is a projection that supply will be tight in a few months, “an initial order of 50,000 metric tons as suggested by industry stakeholders would suffice.”*