Philippine Government to Consider Direct Sugar Purchases Next Year

BACOLOD CITY: The national government is exploring the possibility of purchasing sugar directly from farmers in the early months of next year. This initiative aims to stabilize farmgate prices while also reducing retail sugar prices. Pablo Luis Azcona, Administrator of the Sugar Regulatory Administration (SRA), revealed this plan during a press briefing, highlighting it as a significant intervention to support local sugar producers.

According to Philippines News Agency, current farmgate prices of sugar are significantly lower than the fair market price of PHP3,000 per 50-kilo bag. The prices in Negros and Bukidnon are currently around PHP2,500 and PHP2,300, respectively, markedly lower than last year’s PHP3,200. The SRA, however, is not involved in any marketing or pricing activities, with Azcona noting that the Department of Agriculture is leading the initiative.

Furthermore, the SRA has reached out to the United States Department of Agriculture (USDA) to discuss the delivery of part of the Philippines’ sugar quota to the US. This move comes in response to the current domestic sugar production challenges and market dynamics. As of Nov. 12, the raw sugar production for the 2023-2024 crop year is nearly 400,000 metric tons. Azcona assures that there are no current plans for sugar importation based on the available data.