The National Federation of Sugarcane Planters (NFSP) have petitioned the Sugar Regulatory Administration (SRA) for a compromise and allow millers to begin operations by mid-August.
This developed after Pablo Azcona, acting SRA administrator, sought to allow millers to start instead on 1 September despite appeals for the season to start 1 August to optimize yield and farmer income.
The federation told the SRA of the urgency of its appeal for compromise as sugarcane farmers have struggled for months for lack of income.
Enrique Rojas, NFSP president said in a letter to the SRA that their members, most of whom are marginal farmers, need to generate income given that sugar mills have stopped milling since April.
It added the majority of some 100,000 sugarcane farmers are marginal, subsistence tillers who rely solely on income from their farms for livelihood.
“Hectares of standing canes planted earlier than usual because of the early milling last year are due for harvest in August. Some farmers have already contracted cane cutters and delaying milling will force them to financially support the workers or risk losing them,” Rojas said in the letter.
He explained a simultaneous start of milling in September creates an overwhelming demand for workers and hauling services, which results to an unhealthy competition and push production costs higher.
Rojas cited damage from the recent Typhoon Dodong whose torrential rains and strong winds caused mature canes to dislodge. Left unharvested for long, the quality of sugar from those canes drop precipitously.
But the SRA had said milling operations in the Philippines start in September as scheduled, pointing out an earlier start last year resulted to low production and missed opportunities for farmers to earn an estimated P700 million.
He claimed simulating 432,000 metric tons of sugar milled in August sold at an average price of P2,800 and came to about P1.8 billion.
“We tried it on actual numbers in September with same amount of sugarcane with yield and price points of P3,300 and came up with P2.5 billion. Big difference of P700 million, especially the people who milled in August are small farmer beneficiaries,” Azcona said.
This means around 5,750 farmers missed the opportunity to earn at least P700 million.
Azcona reiterated the September schedule is backed by science and farmers are given the opportunity to choose their sugar mill based on efficiency, incentives and on assistance the mills extend to farmers.
Mills that open first usually get more farmer customers, he said.
