“This is artificial pricing. Someone is manipulating the market, and immediate intervention is crucial to curb the ongoing downtrend in sugar prices.”
This was the statement made by United Sugar Producers Federation (UNIFED) President Manuel Lamata in response to a significant drop in milling prices, which saw a loss of around P100 per 50-kilogram bag of sugar this week.
“We urge the Department of Agriculture (DA) and the Sugar Regulatory Administration (SRA) to intervene immediately and uncover the culprits behind this situation,” Lamata emphasized.
UNIFED suspects that traders are artificially lowering prices to make a profit at the expense of sugar farmers. “These traders should be exposed,” Lamata said.
He also pointed out that while milling prices are falling, retail prices remain stable and may even rise due to the upcoming holidays, potentially resulting in higher profits for traders.
“I am urging farmers to hold on to their sugar until prices stabilize,” Lamata added, acknowledging that this is easier said than done, especially for small farmers who rely on weekly sales. “We may all need to tighten our belts to avoid being exploited by these unscrupulous traders.”
Last Thursday, milling prices averaged P2,500 per bag of sugar, far from the P2,800 per bag farmers were hoping for to make a modest profit. Since the start of the milling season, prices have fluctuated erratically, which has raised suspicions of manipulation that doesn’t align with supply and demand trends.
“We need the DA and SRA to step in and stabilize sugar prices at a reasonable level to prevent further losses, especially with the added challenge of reduced sugar purity due to the prolonged drought,” Lamata added.
Lamata suggested that if the government intervenes by purchasing sugar directly from farmers, it could eliminate traders and sell directly to consumers, helping to stabilize the market.
“We fear that if this downtrend continues, it will have a severe impact on our small farmers, who make up more than 80 percent of the industry. These farmers were hoping for a better holiday season, especially after dealing with the increased production costs brought on by the long drought,” he said.
