Enrique Rojas, National Federation of Sugarcane Planters president, and Rafael Coscolluela, president of the Confederation of Sugar Producers Association, said on Sunday that they are calling on the Sugar Regulatory Administration to immediately allocate a portion of the country’s current sugar supply as “C” because of an upsurge in production and a drop in millgate prices to below P1,300 per Lkg.

UNIFED is against the “C” allocation without quedan financing because the traders will eventually buy the reserve sugar at very low prices, Lamata said.

With quedan financing the “C” sugar will not go out into the market thereby reducing sugar stocks in circulation that will drive sugar prices up, Lamata said.

On Sunday Coscolluela said the allocation of “C” sugar is needed because of “a worrisome drop in sugar prices over the past several weeks, as well as the possibility of a further drop starting January 2013 due to the reduction in tariff on imported sugar to 18 percent and high inventory levels from January to May 2013, which are the peak milling months.”

Rojas said they recommend that a portion of sugar production should immediately be allocated as reserve sugar, which should be gradually converted to “B” when production declines.

SRA Administrator Ma. Regina Bautista Martin Sunday said she is requesting the planters’ associations to assure the small planters of financing their C quedans should a portion of the production be allocated as reserve.

“Small planters will need cash for their quedans. So associations will need to prepare for financing,” she said.

“C quedans are reserved so they can't be sold. Small planters can't hold on as long as the big planters. Quedan financing should be made available for small planters,” she added.*CPG

back to top