UNIFED urges DA and SRA to intervene amid sugar price slump

“This is artificial pricing. Someone is manipulating the market and immediate action is crucial to curb the ongoing downward trend in sugar prices.”

This was the statement by United Sugar Producers Federation (UNIFED) Chairman Manuel Lamata in response to a significant drop in milling prices, which saw a loss of about P100 per 50-kilogram bag this week.

“We urge the Department of Agriculture (DA) and the Sugar Regulatory Administration (SRA) to immediately intervene and identify the perpetrators behind this situation,” Lamata stressed.

UNIFED suspects that traders are artificially lowering prices to make profits at the expense of sugar farmers. “These traffickers must be exposed,” Lamata said.

He also pointed out that while mill prices are declining, retail prices remain stable and may even increase due to the upcoming holidays, potentially resulting in higher profits for traders.

“I urge 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. “Maybe we 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 had hoped to make a modest profit from. Since the beginning of the milling season, prices have fluctuated erratically, giving rise to suspicions of manipulation that is not in line with supply and demand trends.

“We need the DA and the SRA to intervene and stabilize sugar prices at reasonable levels 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 buying sugar directly from farmers, it could eliminate traders and sell it directly to consumers, stabilizing the market.

“We fear that if this downward trend continues, it will have serious consequences for our smallholder farmers, who make up more than 80 percent of the sector. These farmers were hoping for a better holiday season, especially after dealing with higher production costs due to the long drought,” he said.