President Ferdinand Marcos Jr. has approved a substantial budget of P5 billion aimed at directly purchasing sugar from farmers in the Philippines, particularly in Negros Occidental. This decision comes amidst a troubling decline in millgate sugar prices in the region.
The United Sugar Producers Federation of the Philippines (UniFed), led by Mr. Manuel Lamata, appealed to the President for assistance as sugar prices continued to plummet since the start of the milling season in September 2023. Lamata urged the government, specifically through the Philippine International Trading Corp. (PITC), to intervene by purchasing millgate raw sugar at a premium price of P2,800 per 50-kilo bags (LKg). This proposed rate exceeds the current millgate prices, which range from P2,400 to P2,500 per LKg.Reports from Negros indicated that sugar producers were facing losses, with the cost of production for a 50-kilo bag of sugar already reaching P2,500.
Negros Occidental, known as the country’s “sugar capital,” contributes approximately 60 percent of the national sugar production, with raw sugar being its primary traditional export product.
UniFed anticipates that PITC will begin purchasing sugar from farmers nationwide at the premium price starting in the first week of February.
Data from the Provincial Economic Development and Investment Center (PEDIC) revealed that the sugar industry in Negros Occidental supports 21,795 sugarcane planters and 20,768 farmers, cultivating a total of 188,999.96 hectares of cane lands.
Sugar Regulatory Administrator Pablo Azcona emphasized the significance of this collaborative effort, marking the first time industry stakeholders have come together in eight years. The government’s intervention aims to stabilize and support the crucial sugar industry in Negros Occidental. The approval of such a budget for the direct purchase of sugar from farmers in the Philippines, particularly in Negros Occidental, carries significant implications for the country’s sugar export industry. This initiative is expected to stabilize local sugar prices, mitigate losses for producers, and ensure the sustainability of one of the Philippines’ leading traditional export products. PKC