Will Santander Offer Competitive Prices for Northern Sugarcane Farmers?

We also asked Osorio if this decision to take fifty thousand tonnes of sugar cane to be milled at Santander would affect the prices for the farmers. Here’s what he had to say.

On the Phone: Marcos Osorio, Chairman, Sugar Industry Control Board

“No, no, it shouldn’t in anyway. We have had discussions with Santander and they have issued an indication with what will be their price per tonne to be paid, which I can say at this point in time is pretty much a better price when compared to what we have here. But also we have to bear in mind that our payment system, our pricing system changes month by month. BSI issued a revised price estimate as the crop progresses and presently we are on third cane price if I am not mistaken and we are at forty-four dollars and eighty-five cents and for April going into May we should see a revised price estimate and I must say that from the second to the third price estimate there was no change. So, farmers don’t know their final price until November because they get paid under three payment plan – one week after delivery and the second payment is five weeks after the end of the crop and in November is the final or third payment and until then it is known what is the final price.  So, I Must say that Santander has indicated what will be their price and there could be a slight change towards the mid-august when they issue their final payment. Santander is saying their payment system is done in two parts sixty percent fifteen days after delivery and forty percent around mid-August.”