The Sugar Regulatory Administration chief on Wednesday, August 23, allayed fears of sugar farmers that millgate prices could drop below P3,000 per 50-kilo bag (LKg) at the start of the milling season in September.
The Marcos administration is committed to keeping the millgate prices of sugar at P3,000 per LKg to protect the farmers, SRA Administrator Pablo Luis Azcona assured.
Their goal “is to stop all the speculation and to tell everybody that the effort of the current administration is to keep the farmers’ price at P3,000 per LKg or P60 per kilo bag for their raw sugar”, he said.
This will in turn keep the retail price of refined sugar at P85 per kilo, he said.
“I would like to assure the farmers, especially the small farmers that the current administration has mandated us to always make sure that our farmers are protected,” he said.
SRA is a regulatory body so all the sugar that arrives in the country is classified as reserve and the power to convert it into domestic lies with the SRA board, he said.
If the need arises SRA will enforce its regulatory functions, he said.
Azcona also assured that the country has enough sugar supply this crop year. “We are 190 percent better than last year”, he said.
“If the price is P3,000 per LKg I think everybody will be happy , it will pump prime the Negros economy,” Rep. Emilio “Dino” Yulo III (Neg. Occ., 5th District) said in reaction to Azcona’s statement.
GLOBALLY COMPETITIVE
Meanwhile, Azcona, who spoke at the opening of the 69th Annual National Convention of the Philippine Sugar Technologists Association (Philsutech) at the Waterfront Hotel in Cebu City on Wednesday, stressed the need for the sugar industry to further upgrade in order to be globally competitive.
This year’s Philsutech convention theme, “Gearing Towards a Competitive Sugarcane Industry to Adapt to the Changing Global Situation”, coincides with SRA’s vision for the industry not only to persevere but to thrive amidst the new challenges of the times, he said.
He noted that the Philippines for the past five years, has seen its sugar production declining due to the decrease in sugarcane areas, climate change, and the steep cost of fertilizer and other farm inputs.
Azcona said the sugar industry is fortunate that President Ferdinand Marcos Jr. understands its dynamics, and has given marching orders “to ensure foremost, the welfare of our sugar farmers and go full throttle with our modernization plan”.
RESTORE P2B
Azcona also noted that the industry has strong allies in both Houses of Congress “whom we can certainly count on with our appeal to bring back the full Sugar Industry Development Act or the SIDA budget allocation”.
Azcona is asking Congress to fully restore the P2 billion annual allocation for the modernization of the sugar industry, which was granted under SIDA.
The P2 billion annual allocation had been reduced by the Department of Budget and Management in the past because of the SRA’s poor utilization rate.
The SRA head said he was informed that the Lower House will schedule a SIDA public hearing soon in Negros Island.
“I am asking all industry stakeholders to unite and let our voices be heard in that hearing so we can gain traction in implementing our master plan,” he said.
The SRA has been doubling its efforts in efficiently utilizing the P1 billion SIDA budget allocated for this year, and they hope to achieve their utilization target of at least 90 percent before the end of 2023, he said.
They are on track in implementing farm-to-market roads, have organized more than 250 block farms covering more than 10,000 hectares and facilitated the release of more than P250 million worth of start-up capitalization, he said.
On top of the numerous technology-driven and capacity building trainings that SRA has conducted, they have also optimized their budget by procuring hundreds of farm mechanization equipment and implements for farmers, he said.
The SRA is also pushing for the modernization of mills and laboratories, Azcona added.
This year, SRA has asked all mills to revert back to the old schedule of the reopening of the mills which is September 1 in an effort to improve purity, tonnage and extraction, he also said.
SRA also intends to upgrade laboratory equipment to improve soil testing capacities, Azcona said.
Azcona said the industry cannot turn a blind eye to the issue of liberalization, and he thanked the country’s legislators who have taken a strong stand against it.
“We need to adapt to the needed changes, both in our practices and mindsets. More importantly, we need you to rally behind SRA, we need to stand united as an industry, we need to work with one thought in mind, that we be triumphant in the end,” he said.
IMEE MARCOS’ SPEECH
Meanwhile, lawyer Mark John Simondo, who delivered the speech of Senator Imee Marcos at the convention, said mechanization and modernization are key to the declining labor force in the sugar industry.
In line with this, there is a socialized credit program under the SIDA which offers a 6.5 percent per annum rate to service providers for the acquisition of farm mechanization equipment, he said.
Japan has committed 800 million Yen for the procurement of farm machineries for small sugarcane landholders, he added.
Simondo also assured that the senator remains vigilant against illegal price manipulations.
“She will never tolerate hoarding or agricultural smuggling, in whatever shape or form,” he said, pointing out that she filed Senate Resolution 206, calling for an investigation on the rampant smuggling of agricultural products.
“When it comes to importation, I assure you that you will always have an ally in Senator Imee whenever importation of sugar appears to be unreasonable as to its quantity or its timing,” Simondo added.*