The price of a ton of sugarcane has returned to strength these days just as the sugar sector is not doing very well due to the delay in harvesting and the drop in production due to the strong storm. After almost a year of court proceedings, the new court decision restored the price per ton to $35.05.

This price was set by the Ministry of Agriculture and Livestock (MAG) in June 2022, through Ministerial Agreement 47, which abolished the previous price, which was USD 31.70 per ton and which had not been changed for seven years, according to At the time, Isticao is the state portfolio.

The judiciary canceled the increase in the price of a ton of sugar cane, which would have returned to $31.70, a value that had been frozen for seven years

However, following the issuance of the ministerial agreement, the mills in August 2022 presented a protective action to annul the provisions of the MAG, stating that the increase in the price of a ton of cane seriously threatened the viability of the industry. for additional expenditures of about 12 million dollars per year.

The request was accepted by the Multijurisdictional Judicial Unit of the Canton of Yaguachi (Guayas), which reversed the increase and returned the price to $31.70, a decision that MAG appealed. The court process dragged on until this year.

This week, before consulting this newspaper, the State Portfolio confirmed that “as regards the protective suit filed by the mills to MAG, the second-instance judge declared it inadmissible”. This means that the price of $35.05 per ton of cane is currently in effect, since on March 6, the Constitutional Court of the Specialized Chamber of Workers of the Provincial Court of Justice of Guayas decided to accept the appeal filed with the ministry.

If the storm does not subside and the harvest is not regulated, sugar mills will continue to import white sugar to cover production deficits and supply the domestic market.

However, the production sector assures that the mills are currently not paying the official price, but only $33.50 per ton. This was revealed by Alberto López, president of the Milagro Canton Sugar Cane Producers Association (APCAM).

The leader also said mills were paying $33.50 per tonne from the 2022 harvest, which began in June of that year, the same month the ministerial agreement with the new price was issued.

“Last year the sugar mills filed a protection suit… The sugar mills paid $33.50, less than the official value. The protective procedure was followed by an appeal by the Government and now it is stated that it was without effect in legal terms, however, the Government, which is the one that determines the prices, must ensure that it is fulfilled”, asserted López, who expressed his regret that the situation is similar to other consumer prices.

The agricultural industry assures that the price of sugar cane would represent an additional cost of more than 12 million dollars per year

He added: “There are official prices, but they are not respected, the commercial part prevails, and since there is no strong state, then they do what they want and pay the producer what they want”, criticized the union leader who assured that the impact on your sector is great, because before the increase there were years with the same price of $31.70. “It’s business as usual with the government, I give you, look who obeys you,” lamented López, who assured that the authorities do not respect or follow the actions.

However, the leader recognized that currently the production sector is focused on working with the mills to improve the harvest. “Although the price is an important part of the agricultural business, today we are focused on working with sugar mills and we are asking the authorities to support us in order to start this harvest, it is a priority because if there is no harvest, we cannot talk about it. prices,” concluded López.

This newspaper sought the version of the National Federation of Sugar Producers of Ecuador (Fenazúcar) regarding what the producer sector alleged regarding the alleged non-compliance with the official price, but there was no response from the industry union by the time of going to press. .