Several farmers’ groups are asking that the start of the sugar milling season be rescheduled to the end of September, Sugar Regulatory Administrator Pablo Luis Azcona said on Thursday. August 15.
Azcona, who spoke at the Philsutech Convention in Cebu City, said if the mills can get their acts together and agree to a two-week delay, it will be a win-win solution for the industry.
Azcona earlier announced that the milling season this year would start on September 15, instead of September 1 that was the starting date in 2023.
Azcona said that while he agreed last year to a September 15 opening this milling season, “nobody expected the effects of the long drought and many, if not all, are just at the recovery period now. Harvesting the canes by September 15 will yield less sugar for farmers.”
“If most farmers are not willing to cut their canes prematurely, it will be a problem for the mills as they might have intermittent operations which will be costly in the long run. We need our mills to run efficiently and in full capacity,” Azcona said.
Victorias Milling Co. and Universal Robina Corp., two of the biggest mill operators informed Azcona that they have “no objection” to the proposed two-week delay.
Renato Cabati, URC managing director, said they “strongly agree” for all mills to start their operations together, at least in Negros Occidental where mills start ahead of everybody else in the country.
Azcona asked Terence Uygongko of the Philippine Sugar Millers Association, who was present at the plenary to bring the mills together to come up with a “collective decision that is a win-win for all”, especially for the farmers.
Azcona said that while the big planters can afford the delay, the small farmers may have difficulty of having their income delayed for even two weeks.
This is where the mills and the associations, including SRA, can come into play by offering incentives, loans and more importantly, make them understand the higher yield which will translate to profit if everybody agrees to this, he said.
Mills in Luzon have informed him that they will delay their opening by a month, Azcona said.
Azcona said the delay in the milling season this year will also address the call of President Ferdinand Marcos Jr. and Agriculture Secretary Francisco Tiu Laurel to increase the country’s sugar production output.
Meanwhile, Azcona hinted that Sugar Order No. 1 for Crop Year 2024-2025 will allocate 100 percent of the country’s sugar as “B” for domestic consumption.
The estimated sugar production for the new crop year is 1.9 million metric tons that falls short of the 2.3 million MT expected consumption.*