Rep. Emilio Bernardino “Dino” Yulo (Neg. Occ., 5th District) is calling for a congressional investigation into the “artificial drop” in millgate sugar prices to protect small marginalized farmers.
“It is imperative that we take immediate and decisive action to stabilize sugar prices and safeguard the livelihoods of our small sugarcane farmers”, said Yulo, in a privilege speech before the House of Representatives on Monday, Dec. 9
“Let us investigate the factors behind these price instability and hold accountable those who are tasked to protect the sugar farmers and those who take advantage of the situation for an unimaginable profit,” Yulo said.
He said the Sugar Regulatory Administration (SRA), created under Executive Order No. 18, is tasked to ensure stabilized prices at a level reasonably profitable to producers and fair to consumers.
“When tested against its mandate, it is obviously clear that SRA has fallen short. The prices are not profitable for the farmers neither is it fair for the consumers. This failure impacts more than just the industry. The sugar industry is not just about crops, it is about families, communities, and their future,” Yulo said.
Today 90 percent of the sugar farmers are small marginalized planters or agrarian reform beneficiaries who farm 1 to 2 hectares of land, Yulo said.
Yulo said millgate prices averaged at P2,850 per 50-kilogram bag at the start of the milling season and have steadily declined since.
On Thursday last week it was at P2,470 or a drop of almost P400, he said.
“The situation is now alarming. These prices have fallen below production cost. To some, this P400 disparity may be just a mere number but to our marginalized brothers and sisters in the sugar industry, this represents their hope and survival,” Yulo said.
The country’s required raw sugar buffer stock is approximately 200,000 metric tons which translates to a 60-day buffer stock. As of November 15, the supply side has dropped to approximately 150,000 metric tons or just a meager 45-day supply, he said.
“Despite the low supply and the steady demand for sugar, the industry faces low and declining sugar millgate prices. This is an aberration, something that requires our immediate attention, “Yulo said.
He also pointed out that while the millgate price of sugar has dropped significantly, supermarket prices have remained the same consistently, creating a huge disparity that burdens small farmers and consumers.
SRA Administrator Paul Azcona said he would attend the congressional inquiry.
Negros representatives Alfredo Marañon III, Gerardo Valmayor, Juliet Ferrer and Stephen Padunao were present during the privilege speech.
Paduano said he will endorse Yulo’s call for an investigation to the Murang Pagkain Super Committee of the House.*