In just two weeks, sugar prices have gone down by as much as P200 per bag following the slowed demand for the commodity as nonessential factories remain closed and with most household prioritizing more essential food items.
As such, the Sugar Regulatory Administration (SRA) has appealed to the Department of Agriculture for financial assistance in the form of quedan financing, wherein warehouse receipts known as “quedan” may be used by stakeholders as collateral for loans.
Figures from the agency showed that prices have dropped to P1,375 per 50-kilo bag from P1,580 two weeks ago. While production costs vary per region, the average rate is usually between P1,000 and P1,200 per bag.
“We are appealing for immediate intervention from the national government, particularly Land Bank and other government financial institutions, to step in and provide quedan financing to stop the bleeding,” SRA said in a statement. “We are afraid that the drop in sugar prices will cause a disastrous effect in the long-term.” INQ