Rejuvenating the Sugar Industry: DA and SRA Collaborate with Stakeholders for Direct Purchase Plan

January 21, 2024

In a landmark initiative aimed at bolstering the sugar industry, the Department of Agriculture (DA) alongside the Sugar Regulatory Administration (SRA) recently orchestrated a pivotal meeting with the industry’s leading figures. The crux of the discourse was the government’s innovative proposal to directly purchase sugar from farmers at a premium rate, a strategic move to counteract the stagnantly low farmgate prices that have been plaguing producers, typically oscillating between PHP2,400 and PHP2,500 per 50-kilogram bag.

During a press briefing on Sunday, SRA Administrator Pablo Azcona, in concert with Agriculture Secretary Francisco Tiu Laurel Jr. and Philippine International Trading Corp. President Undersecretary Emmie Liza Perez-Chiong, convened with representatives from a wide spectrum of the sugar industry. The meeting, hosted at the DA central office in Quezon City, was a congregation of sugar federation leaders, millers, cultivators, and traders.

Reflecting on the significance of the gathering, Azcona observed, “It was a momentous event, marking the first instance in nearly eight years that stakeholders across the spectrum have come together. We envision this as the genesis of a cohesive industry hallmarked by transparent communication and robust mutual support.”

The attendees comprised a broad array of industry associations, including the United Sugar Producers Federation, Confederation of Sugar Producers Association Inc., National Federation of Sugarcane Planters, and many others, all instrumental in shaping the mechanics of the government’s initiative to participate in sugar procurement.

The discussions delved deep into strategies aimed at fortifying productivity and profitability, ensuring a stable supply of sugar for both consumers and industrial sectors, and achieving fair retail prices, all while prioritizing the welfare of the sugar farmers, who form the cornerstone of the industry.

Azcona, while not divulging specifics regarding the procurement timeline and pricing, emphasized the transformative potential of such collaborative dialogues. “Bringing together the leaders of the sugar industry to chart the sector’s course is an event of rare significance. It signifies a collective commitment to ameliorate the condition of our sugar farmers, who are indeed the linchpin of our supply chain.”

This meeting came on the heels of an announcement made last month by Azcona during a media briefing, where he unveiled the government’s intention to buy sugar directly from the cultivators. This scheme aims not only to support farmgate prices but also to moderate retail costs for consumers. The move was a response to the appeal for intervention by the sugar producers’ federations to Laurel and President Ferdinand R. Marcos Jr., following a notable slump in sugar prices since the milling season’s inception in September.

The industry commonly considers a price of PHP3,000 per 50-kilogram bag as equitable. However, prevailing prices, especially in areas like Negros, the nation’s sugar bastion, have not yet reached this benchmark.

Expressing optimism about the future and acknowledging the unwavering support from the President and the DA, Azcona noted, “The concerted efforts of all stakeholders will be the cornerstone in propelling the industry towards a trajectory of positive growth. My deepest gratitude goes to President Marcos and Secretary Laurel for their steadfast dedication to aiding the industry, with a special focus on the welfare of the sugar farmers.”

As the sugar industry navigates through these challenging times, the collaborative efforts and proactive measures taken by the DA, SRA, and the various stakeholders are a beacon of hope. The direct purchase initiative is not just a strategy for economic stabilization but also a testament to the government’s commitment to safeguarding the interests of the sugar farmers, ensuring the sustainability of the industry, and fostering a balanced ecosystem for all parties involved. As this initiative unfolds, it holds the promise of ushering in a new era of prosperity and resilience for the sugar industry in the Philippines.

For additional information and further reading, refer to the original article here.