Negros sugar planters face bleak holidays as millgate prices plummet

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Millgate prices per 50-kilogram bag of sugar on Negros Island averaged P2,130 to P2,200, around P380 lower than the supposed production cost

NEGROS OCCIDENTAL, Philippines – For some 140,000 small sugar planters in Negros Occidental, this will not be a merry Christmas. Plunging local sugar prices have erased hopes of decent holiday earnings, leaving the mostly agrarian reform beneficiaries, facing a bleak start to the new year.

On Thursday, December 18, millgate bid prices per 50-kilogram bag of sugar on Negros Island averaged P2,130 to P2,200, around P380 lower than the supposed production cost.

Universal Robina Sugar Milling Corporation in Negros Oriental offered the lowest bid at P2,130 per bag, while First Farmers Holding Corporation in Talisay City, Negros Occidental, posted the highest at P2,292.19 per bag.

Lucio Tan-led Victorias Milling Company, Asia’s biggest sugar refinery, maintained a steady price of P2,200 per bag, while the Jose Marie Chan-owned Binalbagan-Isabela Sugar Company offered P2,155 per bag.

Current millgate bid prices are slightly below October’s average of P2,250, two weeks after 424,000 metric tons of imported refined sugar arrived in the country.

Saul Casiple, a small sugar planter in Victorias City and EB Magalona, told Rappler on Friday, December 19, that he was severely affected by the declining prices.

“It’s okay for the big planters because they have extra capital. But for us small ones, it’s truly pitiable,” he said.

Last week, Casiple milled 50,000 tons of harvest for a total of P150,000. Milling costs amounted to P40,000, while planting and growing expenses – including wages, fertilizers, and pesticides – further reduced his income.

“We’re really losing or even if we were in a break-even, still, it will lead us to look for additional capital in the next cropping period because part of our present income now has been allotted already for our food, among other expenses,” Casiple said.

Expenses for a single hectare of sugarcane range from P80,000 to P90,000 for new plantings and P60,000 to P70,000 for ratooned crops.

“Add the planting, growing and milling expenses – the current sugar pricing will not really compensate our overall spending,” he added.

Mayors from 31 towns and cities in Negros Occidental have called for immediate government intervention.

Cadiz City Mayor Salvador Escalante Jr., president of the Association of Chief Executives (ACE) in Negros Occidental, said the Marcos administration should not ignore the crisis, especially since the most affected are needy agrarian reform beneficiaries. 

Negros Occidental produces 60% of the country’s sugar but thousands of small planters and laborers are facing low or no income due to poor prices.

Negros Occidental Governor Eugenio Jose Lacson urged stakeholders to unite and prevent further declines in sugar prices. 

“Together, let us act with firm determination to safeguard the livelihood of our farmers, workers and communities,” he said.

Excessive sugar imports are cited as a primary cause of the crisis. The government imported 424,000 metric tons of refined sugar under Sugar Order No. 08 (SO8), which arrived in mid-September, surprising local producers.

Sugar planters’ federations had requested only 150,000 metric tons. The resulting surplus is causing significant revenue losses.

The Confederation of Sugar Producers Association (CONFED) reported forgone revenues of P4.2 billion as of November 23. With current prices, CONFED projects losses could reach P23.3 billion for Crop Year 2025-2026.

Negros Occidental 5th District Representative Emilio Bernardino “Dino” Yulo III, a former Sugar Regulatory Administration official, said the pricing trend is “bad” for small planters, especially during the holiday season.

He said the small planters’  primary concern is earning enough to cover daily expenses and pay field workers. Lower millgate prices make it difficult to cover fertilizer, pesticide, and labor costs, he said.

“SRA should look into their plight,” Yulo said. “We feel them. We pity them.” – Rappler.com