By ERWIN ‘AMBO’ DELILAN
FOR THE sugar industry, 2023 is a “bad year”.
Such will end (a day from now) with plummeted millgate prices of sugar – at its lowest point: P2,300 per 50-kilogram bag (lkg), making planters “whine up to heaven” for President Bongbong Marcos’ immediate intervention.
What’s the main cause?
Answer: Sugar importation.
Who’s behind this unstoppable sugar importation?
The Sugar Regulatory Administration (SRA) is in quandary still. Opps!
‘SILENT CRISIS’
The situation within the sugar industry seems “abnormal”. Earlier, there’s a noted shortage of supply of sugar in the domestic market because of reported “poor harvest” in crop year 2021-2022. This led to a price increase, reaching to almost P105-P120/kilo (refined sugar).
But with the “too low” millgate prices now at P2,300/lkg from P3,2000/lkg last year, planters chorused: “This is unbearable”.
Agrarian reform beneficiaries-turned-small planters are reeling.
The current millgate prices can’t cope with the high prices of fertilizer, among other farm inputs needed to cultivate sugarcane. They termed the scenario a “silent crisis”.
‘SMUGGLING’
Suspicions arise that there are traders taking advantage of the situation through hoarding or smuggling of locally-produced sugar.
At the same time, there are also some people allegedly manipulating the sugar importation, causing an “oversupply” of imported sugar in the market.
Weird. But sad. And bad.
Some industry analysts say sugar problems ain’t only happening in the Philippines. Even India and Thailand – the top sugar-producing countries in Asia – are also suffering from sugar crisis due to the El Niño phenomenon that causes severe drought.
So where are the sugar imports coming from?
PUZZLING
SRA administrator Paul Azcona admitted being puzzled by the situation besetting the sugar industry.
He said the drop in millgate prices of sugar is usually based on “market forces”.
“If there’s oversupply,” he explained, “the retail price should have dropped also.” “But how come it is not dropping? Only the people involved in the trading side can explain it.”
Puzzling is the right term!
‘URGENT CRITICAL’
Azcona said the President’s help is a must. The ongoing drop in sugar prices is considered “urgent critical”. And this is the very reason why various sugar federations are “crying” for immediate government intervention.
As for Azcona, “The government has always been looking at the idea of purchasing sugar directly from farmers.”
“We are now checking as to the legality of this plan, and what particular government agencies will be involved,” he added.
‘MR. PRESS RELEASE’
Some sugar planters said Azcona is only good in press releases, but no “skill” to draw up solutions to address the crisis.
He’s a far cry from his predecessors who were really “fighters” when it comes to sugar issues, the disgruntled planters added.
But Azcona, in a media interview six or seven days ago, stressed, “The only problem that we’ve seen so far is the historical numbers for demand, or withdrawal, that actually dropped significantly, with 20 percent in raw sugar, and 11.5 percent in refined sugar.”
Then, he added, “The only thing we can do now is to assure the consumers of a stable supply (not price), especially in December.”
‘SUGAR DOCTOR’
In a nutshell, the sugar industry is in “bad shape”. It needs a “sugar doctor” who will immediately cure the situation.
Let it be known that even President Marcos Jr. has been critical about sugar imports. But he himself is “helpless” and “hapless” with the newest tweak in the sugar industry.
Question: What’s essence or relevance of SRA?
And if Azcona can’t act as a “sugar doctor”, what’s the point of keeping him as SRA chief?/PN
