SRA says farmers are benefiting from latest Sugar Order
Sugar Regulatory Administration (SRA) said that farmers are reaping benefits from the issuance of Sugar Order no. 1-A (SO 1-A), which allocated more of sugar production to domestic market.
Beginning week-ending January 28, 2018, the new sugar production allocation prescribed by SO 1-A of 6 percent US quota sugar, 93 percent domestic market sugar and 1 percent world market sugar took effect.
To recall, upon the start of 2017 to 2018 sugarcane cropping season, SRA issued Sugar Order No. 1 with the following production allocations: 10 percent for the US quota, 80 percent for the domestic market and 10 percent for the world market.
The new issuance was carefully deliberated by the SRA Sugar Board taking into account the sugar production and consumption trend specifically the unfavorable weather conditions, that adversely affect production and the domestic sugar demand, including those of sugar sweetened beverages.
SOA 1-A ensures that there will enough supply for the domestic consumption with a comfortable buffer stock at the end of the crop year, SRA said.
“Indeed, prices of sugar have been stable and reasonably profitable since the issuance of SO 1-A,” SRA said.
SRA price monitoring reports showed that the average composite millsite price of raw sugar in the week-ending prior to the implementation of the new allocations was at P1,312.45 per 50-kilo bag but when the new allocation policy took effect, the average composite millsite price increased to P1,359.87 in the following week-ending. Increase in composite millsite price ranged from P42 – P47 per 50-kilo bag of raw sugar.
“This composite price likewise shows that SO 1-A is fair to consumers while at the same time profitable to producers, and more importantly the said sugar order gives the assurance that there is sufficient supply of sugar for the domestic market for crop year 2017-2018,” SRA said.
Numerous Block farms of Visayas, the Iloilo Mill District Development Council and the Jalasig Sugarcane Planters Association also supported the new allocation of SRA, stating that this new sugar production allocation has improved farmers’ income and proceeds from sugarcane farming.