Sugar industry stakeholders seeking hike in mill gate price

BACOLOD CITY , Philippines – Saying they are operating below production costs, stakeholders  in the sugar industry and labor groups are urging the Department of Agriculture and the Sugar Regulatory Administration to raise the mill gate price of the sweetener.

The Sugar Council along with the National Congress of Unions in the Sugar Industry of the Philippines and the Democratic Association of Labor Organizations said the mill gate price of raw sugar in Negros Occidental averaged at P2,600 per 50-kilo bag during the first week of this month.

Stakeholders want a baseline price of at least P2,900 per 50-kilo bag to help sugar farmers cope with the rising cost of production.

They said farmers are struggling with low sugarcane yields and poor sugar recovery due to infestations caused by the red-striped soft scale insect and bad weather.

At the prevailing average price of P2,600 per 50-kilo bag, farmers are losing money, while small planters and agrarian reform beneficiaries may be unable to finance the next planting season.

The groups cited the gap between the mill gate and retail prices, with raw sugar reportedly selling at P73 per kilo, which is equivalent to P3,650 per 50-kilo bag.