Sugar producers will lose millions of pesos with an expected drop in millgate sugar prices in today's bidding in Negros Occidental brought about by the removal of the "C" or reserve sugar allocation, Franklin Fuentebella, chairman of the Planters Association of Southern Negros cooperative, warned yesterday.

Fuentebella said an average drop of P35 in the millgate price of sugar per Lkg was noted at the Department of Labor and Employment bidding in the Binalbagan-Isabela Sugar Company area yesterday.

"A" sugar for the US market sold at P1,035 per Lkg but the bid of P983 for domestic sugar was rejected because it was too low, he said.

If the drop in prices by P35 per lkg is to be a gauge of today's bidding with 1,400,000 bags of sugar sold a week producers will suffer a loss of P50 million, Fuentebella said, as he called on Ledesma to reimpose the allocation of "C" sugar.

Late last month, Ledesma cancelled the "C" allocation when prices of domestic sugar rose to P1,030 per Lkg and above.

He said the cancellation of the "C" was necessary because of the tightness of supply in the market that could drive millgate prices higher and cause retail prices to consumers to rise.

He explained that as SRA administrator his job was to ensure that prices stay reasonably profitable to producers and fare to consumers.

Yesterday he said he expects prices of sugar to remain profitable to producers today despite the lifting of the "C".

Manuel Lamata, president of the United Sugar Producers Federation of the Philippines Inc., who is calling for the resignation of Ledesma for failing to consult the sugar industry on the lifting of the "C" allocation, yesterday said the prices of sugar in Batangas had gone down P30 per Lkg this week from P1,038 to P1,012.

He said he hopes prices do not go below P1,000 per Lkg on bidding in Negros today.

Luis Mirasol Jr. of the Independent Planters of BISCOM said prices of domestic sugar should be at least P1,025 per Lkg so it will be at par with the landed cost of imported sugar.*CPG

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