Three federations are calling for intensified anti-smuggling operations following the plunge in millgate sugar prices by close to P1,000 per 50 kilo bag in the last three weeks.
Aurelio “Bodie” Valderrama – Confederation of Sugar Producers Associations president, Enrique Rojas – National Federation of Sugar Planters president, and Danilo Abelita – Panay Federation of Sugarcane Farmers president issued the call in a joint statement of concern Monday, November 7.
They said the plunge in prices is a matter of grave concern for producers, who continue to reel from increasing costs of production.
“The reasons can be attributed to a possible spike in sugar smuggling coupled with an increase in sugar inventory due to imports and peaking of milling operations,” they said.
“In this regard, we reiterate our call for intensified anti-smuggling operations even as we carefully analyze production and supply and demand forecasts, so that sugar policy – particularly on imports – will not precipitate a further drop in prices,” they added.
They called on stakeholders to seek ways to address production drops due to unfavorable weather as well as increasing costs of production, with support from government particularly through fertilizer and fuel subsidies or other measures to help reduce production costs and improve yields.
“These are challenging times for the sugar industry and we must pursue all possible measures to meet the challenges head-on,” they said, which can be achieved if they “work in concert with all concerned stakeholders”.
Sugar prices per 50 kilo bag last week ranged from P2,850 to P2,920.*