Sugar farmers are demanding that mills upgrade now to produce not only sugar, but ethanol, alcohol for potable drinks and power in order for the sugarcane industry to survive beyond 2015, Manuel Lamata, president of the United Sugar Producers Federation of the Philippines, said Saturday.

Tariff on imported sugar will drop to 5 percent in 2015.

“If the sugar mills don’t move, we will move, we will look for other investors to come in,” he said.

The mills that do not upgrade will lose the farmers supply of sugarcane to new facilities of new investors, Lamata added.

He said diversification sugarcane products is necessary in order for farmers to earn more from their produce to survive.

Lamata said the early start of the milling season this year is timely because of the low supply of sugarcane in warehouses now.

Last week sugar sold at P1,650 per Lkg and they are hoping even it drops it does not go below P1,500, he said.

Cost of production is way up from fuel, fertilizer to labor, sugar prices need to stay up, he said.*CPG

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