SRA eyes direct sugar purchases
THE Sugar Regulatory Administration (SRA) is considering direct sugar purchases from farmers to address dropping farmgate prices.
SRA Administrator Pablo Azcona said on Friday that the government was «seriously planning» the move, which will also allow for better market prices.
«So this way, we will give the farmers a better farmgate [price]. At the same time, the consumers and the farmers as well, will get a better retail price,» said Azcona.
From the ideal price of P3,000 per bag at the start of the crop year in August, prices have slipped to P2,390 to P2,500 per 50-kilo bag in the past weeks.
Azcona said a fair farmgate price of sugar would range from P2,700 to P3,000 per 50-kilo bag.
Certain agencies, meanwhile, will be allowed to conduct sugar trading.
«We will be the conduit. These agencies, we will connect them with the farmer associations so they can buy the sugar directly from the farmer associations,» Azcona said.
«So hopefully, we can get the P85 (per kilo) of sugar that we're pushing even in the supermarket,» he added.
The SRA chief also said that demand for raw sugar had dropped by around 20 percent, while that for refined sugar was down about 11.5 percent.
«As to why the demand dropped is something that I do not know at this time. We are studying it. It might be economic, it might be just purely on the business side,» he said.
«But because of this, and because of the drop in demand, I feel and as of now, there are no plans of any sugar importation.»
The Philippine Sugar Millers' Association Inc. (PSMA) said it supported the view that there was no need to import sugar.
«Demand withdrawals have been slow since the start of the season,» PSMA Executive Director Jesus Barrera said.
«Based on the latest figures of SRA, as of Dec. 3, 2023, raw sugar and refined sugar withdrawals are down 23 percent and 10 percent, respectively, year on year, he added.
The country, Barrera continued, has just started the milling season.
»Given sluggish demand and reduced prices, sugar producers see no justification for importing sugar, as any additional imports would worsen and prolong their current predicament," he said.
