Sugar industry leaders are urging the government to revive and refine its sugar-buying program and study adopting a government-mandated floor price, two measures they said could stabilize farmgate prices and protect producers from market volatility.
The proposals were discussed during a meeting of federations, millers, labor representatives and officials of the Sugar Regulatory Administration (SRA) held Monday at the agency’s Bacolod office.
Stakeholders agreed to recommend revisiting the government buying program approved two years ago by President Ferdinand R. Marcos Jr., which involved about P5 billion requested by Agriculture Secretary Francisco Tiu Laurel Jr. and SRA Administrator Pablo Luis Azcona. The program would allow the government to purchase a portion of sugar output from farmers and millers at a predetermined price.
“We hope this is a continuation of the administration’s effort in unifying the industry and coming up with unified efforts between the government and the private sector,” Azcona said. “I am very happy to see all stakeholders present. In agreement, this will ensure the survival of our beloved sugar industry. I thank everyone for coming and participating.”
Industry groups said the buying program, combined with a possible floor price policy, could provide a safety net for producers during periods of weak prices while ensuring market stability.
The Confederation of Sugar Producers Associations (CONFED) presented initial recommendations on how the buying program could be implemented with adjustments, while other stakeholders committed to submitting their own proposals to the SRA.
The meeting also addressed concerns raised in a letter by farmers’ representative Dave Sanson about the potential impact of escalating tensions in the Middle East on production costs, particularly fuel, fertilizer and other farm inputs.
Stakeholders agreed to consolidate their recommendations in a letter to be endorsed by the SRA to the Department of Agriculture and Malacañang.
