Wednesday, March 4

BIPA warns of almost total market collapse as sugar prices plummet

“We are witnessing the systematic destruction of the Philippine sugar industry,” BIPA said.*Ronnie Baldonado photo

The Binalbagan-Isabela Planters’ Association (BIPA) has issued an urgent call for immediate government intervention and a comprehensive leadership audit of the Sugar Regulatory Administration (SRA).

BIPA, in its statement of “indignation” issued on Tuesday, March 3, said “we are witnessing the systematic destruction of the Philippine sugar industry—a pillar of our national economy and the lifeblood of millions—while the very government agencies mandated to protect us stand by in a state of paralyzed indifference.”

The situation has transitioned from a “crisis” to almost total market collapse, it said.

Sugar prices in the Philippines have plummeted to their lowest levels in over five years, with millgate prices crashing to as low as ₱2,100 per 50-kilo bag, while production costs exceed ₱2,500, BIPA said.

Despite warnings, the SRA allowed an over-importation of nearly 1.5 million metric tons of refined sugar over the last three seasons—more than double the necessary buffer stock, BIPA said.
The SRA’s inability to forecast the disastrous impact of their importation policies has led to the current disastrous situation, it added.

“Their failure to implement the Sugar Industry Development Act (SIDA) effectively—which should have improved our productivity and lowered costs years ago—has left us defenseless against a market that has been flooded with the double whammy of cheap imports and artificial sweeteners,” it added.

BIPA called on the government to act immediately with concrete steps to protect sugar farmers and the local sugar industry, which contributes ₱96 billion annually to the local economy and employs around 700,000 workers.

It also wants a full audit and leadership review of the SRA “to determine why proactive measures were ignored while the industry is continuing to spiral toward economic catastrophe.”

“If the government does not act within days, they will not be looking at a struggling sector—they will be looking at a dead one,” BIPA said.*

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