The mayors of Negros Occidental will meet Tuesday to discuss calls for new sugar allocations to arrest a feared downslide in farmgate prices, Manapla Mayor Manuel Escalante, Association of Chief Executives president, said yesterday.

Escalante said they will discuss the proposals and come up with a position on the matter. Gov. Joseph Marañon also said the SRA should come up with a solution to protect the farmers from a drop in prices.

The SRA is closely monitoring the sugar prices and will act accordingly, SRA Administrator James Ledesma said earlier. Sugar leaders, alarmed over a drop in sugar prices from about P1,100 per Lkg at the start of the milling season to a low of P930 per Lkg last week said they are recommending a new sugar allocation.

The Sugar Alliance is asking that sugar for crop year 2006-2007 be allocated as follows: A (US quota) - 10 percent, B (Domestic Market) - 70 percent, C (Reserve) - 10 percent and D (World Market) - 10 percent, Rojas added.

However, sugar leader Luis Mirasol said a more equitable allocation would be 8 percent for A, 70 percent for B, 17 percent for C and 5 percent for D.

That is because with production this crop year expected at 2.247 million metric tons, Mirasol sees an expected surplus of 94,000 MT.

He said domestic consumption is expected at 1,980,000 MT, while sugar to be allocated for the Philippines share of the US quota is 173,000 MT.

That is why only 8 percent of the country's production is needed to fill the US quota, he said.

Escalante said he has asked Mirasol to submit a copy of his proposal to the mayors so they can discuss the matter so they can submit their stand to the SRA.*CPG

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