Philippines: Federation Urges Government to Buy Sugar Directly
Unifed Urges Government to Buy Sugar and Sell Directly to Public
The United Sugar Producers Federation (Unifed) has called on the Philippine government to buy sugar directly from mills and then sell it to the public. According to Unifed, this approach would eliminate middlemen from the sugar trade and help stabilize prices, halting the downward trend seen in mill prices.Unifed president Manuel Lamata claimed that some traders have been resorting to artificial pricing to maximize their profits, causing retail prices to remain high despite the decline in mill prices. Lamata further stated that prices may rise when demand increases during the holiday season.
Call for Government Intervention to Stabilize Prices
Lamata emphasized the need for intervention from both the Department of Agriculture (DA) and the Sugar Regulatory Administration (SRA) to maintain sugar prices at a sustainable level and prevent further losses. This is particularly crucial now due to the ongoing drought, which has also raised concerns about sugar purity.While Lamata did not specify a "comfort level" for prices, he noted that mill prices have fallen by approximately $1,81 per 50 kg bag of LKG sugar in the past week alone. According to SRA mill site monitoring, the price of raw sugar as of November 3 stood at $0,97 per kg. In contrast, Unifed reported that mill sugar prices averaged $0,90 per kg as of last Thursday.
Advice for Farmers and Concerns for Small Producers
Lamata urged farmers to hold on to their sugar until prices stabilize. He acknowledged that this may be difficult for small farmers who rely on weekly trades to survive. “We have to tighten our belts so that we are not exploited by unscrupulous traders,” Lamata said.Unifed also highlighted the volatility in sugar prices since the start of the milling season, driven by inconsistent supply and demand. Lamata expressed concerns about the ongoing decline in prices, which could severely impact small farmers, who represent over 80% of the industry’s producers. These farmers are hoping for a better holiday season with increased production due to the prolonged drought.
Retail Price Trends
Based on DA’s monitoring of public markets in the National Capital Region, the retail prices of sugar as of last Wednesday were as follows:- Refined sugar: $1,34 to $1,63 per kilogram
- Washed sugar: $1,21 to $1,54 per kilogram
- Brown sugar: $1,18 to $1,54 per kilogram
Conclusion
In conclusion, the call from Unifed for government intervention to buy sugar directly from mills and sell it to the public aims to stabilize the sugar market and eliminate middlemen who are causing artificial price hikes. The holiday season, with its increased demand, may offer an opportunity for price recovery if proper measures are taken to ensure a steady supply.Click here to reach our trading platfrom CMBroker
