The Sugar Regulatory Administration is sticking to its decision to start the milling season on September 1 to ensure higher sugar yield and revenues for the farmers, SRA Acting Administrator Pablo Azcona said Thursday, July 27.
“I’m pleading to the mills to respect the September 1 date”, sanctions will be imposed on those that defy the SRA advisory, it will not be tolerated, Azcona said at a press conference at the SRA office in Bacolod.
He pointed out that only one sugar mill has requested to start milling in August.
“Delaying the mill reopening to September 1 was based on 2 premises – higher yield in terms of KG/TC and correspondingly, increase in revenue for our sugar farmers, particularly the smaller ones that we need to protect”, Azcona stressed.
He said SRA computations show that starting the milling season in August last year caused lower yield and losses of about P700 million in revenue to small farmers.
“The main thrust of the current administration is to improve production capacity because we are so import dependent and we want to move away from that, we want to be self-sufficient,” he also said.
Azcona was responding to a letter from the Sugar Council, composed of the Confederation of Sugar Producers’ Associations Inc., National Federation of Sugarcane Planters and Panay Federation of Sugarcane Farmers asking the SRA to allow the start of the milling season in August, which he said he first learned about through the media.
“Their media release came as a surprise since this advisory was relayed to all sugar mills as early as May and I have met with all three concerned federations individually post that issuance of the deferment memo,” Azcona said.
The sugar federations should back their requests with data, they should provide figures, Azcona said.
He said of the nine sugar mills in Negros, only one protested the delay in the reopening of sugar mills to September 1.
“Since majority (of the mills) agree to the memo, we expect everyone to adapt to the new schedule,” he said.
In fact, Azcona said the September 1 mill reopening is a first in a series of deferment of dates in the next three years to go back to the original mill opening which is October 1.
“By 2025, we will back on track with the hope that our annual production will increase,” he added.
Azcona said they conducted a simulation of the August and September production last year wherein the August figures showed that 432,000 tons of canes were milled with an average LKG/TC of 1.4 at an average price then of P2,800 per LKg bag of sugar or a total of P1.8 billion in revenues.
The same volume of canes milled a month later, yielded an average LKG/TC of almost 1.7 at an average price then of P3,300 per LKg bag of sugar or a total of P2.5 billion, he said.
“It’s a big difference of about P700 million which could have been additional income for our farmers, especially since most if not all of those who milled in August of last year were our small farmer beneficiaries.” Azcona said.
Regarding the issue on over aged cane if milling be delayed to September 1, Azcona said he checked SRA records which showed that “only one mill has constantly opened ahead of everyone, and records show this mill would open in August this year and September the next year and back to August, clearly showing that this issue is non-existent, and the opening date is purely based on competition for cane supply.”
He identified the mill as First Farmers Holding Corporation.
On the issue of sugar supply, “we have enough sugar to last us till the reopening of the mills on September 1” thus, “it was an opportune time to move back the date to increase yield”, Azcona said.
He said they took notice of the Sugar Council’s apprehension regarding cash flow of small farmers for the month of August.
“I have ordered the SRA to look into the possibility of providing assistance, be it food or subsidies to our small farmers who will need help,” he said.
Azcona said newly appointed member to the SRA Board representing the planters, Dave Samson has been doing the rounds of consultation with small farmers and so far, everyone is amenable to moving the date to September 1 if it promises better yield and income for them.
“We want to veer away from dependency on sugar importation and improve our productivity as soon as possible, and if allowing canes to grow longer to have better yield is one solution, then SRA will implement it bearing in mind the advantages it will give to the small farmers especially,” he added.
Azcona said that he will meet with sugar millers soon to also propose to them to make this date deferment an opportunity for them to leverage themselves to sugar farmers.
“If mills can provide early assistance to farmers in lieu of assured cane supply when milling starts, then it will also give our farmers an opportunity to choose where to mill based on best offer and best performance, thus a better business sense for mills to improve their capability as well,” Azcona said.
“If we want to be serious in increasing productivity and improving the lives of our sugar farmers, then we should unite as an industry and look at the bigger picture rather than just our own interests,” he added.*