NATIONAL Federation of Sugarcane Planters president Enrique D. Rojas called on the Sugar Regulatory Administration (SRA) Thursday to "reserve sugar immediately" aside from the present allocation for C1 sugar.

Rojas said, as more mills engage in milling operations, the supply of sugar in the country will increase but monthly domestic demand cannot be expected to absorb the increase in supply.

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"Supply will be higher than demand," he said in his letter to SRA Administrator Rafael L. Coscolluela.

Already for two months, mills in Negros had been operating and the Panay mills began accepting cane deliveries last week, while mills in Cebu, Leyte and Mindanao are slated to start milling next week.

"In just a week or two, almost all sugar mills in the country will be operating and the consequent imbalance in supply and demand will depress domestic sugar prices from its present level which is fair to producers," Rojas said.

Any decline in sugar prices from its present level will be detrimental to sugar producers who are just now recovering from low sugar prices in the past several years, he theorized.

Coscolluela assured the producers that the matter will be discussed in the next Sugar Board meeting and hinted if possible the board can come up with a consensus "to speed up the decision-making process."

"We will take stock of the situation. The present low sugar prices are just a temporary market adjustment to the price cap imposed on sugar. Once this issue of the price cap is resolved, I am positive that sugar prices will recover," said Coscolluela.

To date, allocation for sugar production is 90 percent for B or domestic sugar, 4 percent for A or US quota sugar, 4 percent for C1 or reserve sugar which can be converted later to B, A or D sugar, and D or world market sugar which can also be made available to sugar-based food processors and exporters.

"This C or reserve sugar can be converted back to B or domestic sugar when SRA determines that there is a shortage in domestic supply," Rojas said.

NFSP strongly recommended that 10 percent of the production should be classified as C or reserve sugar to take it out of circulation in the domestic market and thereby stabilize supply with demand.
(Butch Bacaoco)