The National Federation of Sugarcane Planters Inc., through its president Enrique Rojas, justified the current levels of sugar prices in the wake of clamor from beverage producers to import sugar because of the increasing domestic prices.

In a letter to Trade and Industry Secretary Peter Favila, Rojas said that NFSP sympathizes with beverage producers in taking steps to reduce costs of production but it is quite frustrating that they do not sympathize with sugarcane farmers.

Favila had earlier said he is amenable to the proposal to allow food processors to import to enable them to lower their manufacturing costs.

Rojas said that it is only now that sugar prices have increased to a level that gives them modest return to their investments to pay for their debts in the past years when exorbitant costs of production inputs like fertilizer, fuel and spare parts made them lose money.

Prices of domestic sugar have recently hit the P1,300 per Lkg. mark.

Rojas added that the increase in sugar prices is a worldwide trend and as a matter of fact, prices in the world market is much high higher than in domestic market.

This is the reason why we do not quite understand the clamor of beverage companies to import their sugar requirement, Rojas said.

If they want to reduce their intermediation cost, he said, NFSP is willing to help him and his company source their sugar requirement from their members.

The Confederation of Sugar Producers Associations Inc. had also opposed earlier Davila's support to the proposal of the beverage companies, saying that allowing these firms to import sugar now would lead to too much sugar supply and cause prices to plunge to the detriment of farmers.

However, they will not object much to importation if it will be done after the milling season in the Philippines and will be imposed the necessary import duties, they said.*NLG

back to top