Sugar industry stakeholders have urged President Ferdinand Marcos Jr. to impose a “no sugar import policy” for the next 18 months, unless domestic supply falls below a critical level, and to ensure that any imports allowed are limited strictly to raw sugar intended for refining, reported The Visyan Daily Star.
As per the news report, in a December 19 letter coursed through the Sugar Board, Negros Occidental Governor Eugenio Jose Lacson, along with representatives from the Association of Chief Executives of Negros Occidental, the League of Municipalities of the Philippines–Iloilo chapter, the Confederation of Sugar Producers Association, the National Federation of Sugarcane Planters (NFSP), the Panay Federation of Sugarcane Farmers Inc., the National Congress of Unions of the Sugar Industry of the Philippines, and other labor groups, warned that the industry is facing severe strain. They cited declining millgate prices for sugar and molasses amid excessive inventories, weak demand, rising production costs, and crop losses caused by adverse weather and RSSI infestation.
The letter noted that storage facilities are already overstretched, farmers’ incomes are worsening, and mounting financial pressure on planters and millers is now threatening the long-term viability of the sugar industry.
At the start of the 2024–2025 crop year, millgate prices averaged P2,800 per 50-kilogram bag. Prices later dropped to P2,350 in October and P2,400 in November, before falling further to between P2,100 and P2,200 in the first two weeks of December.
To stabilize the market and rebuild confidence, the group called for immediate and decisive government action, including the declaration of a no-import policy for the next 18 months. Should imports become unavoidable, they said these must be confined to raw sugar for refining by local refiners and implemented only after consultation with stakeholders.
They also recommended the active use of the Sugar Regulatory Administration’s (SRA) classification authority under Executive Order No. 18 to manage inventory levels and stabilize prices; the institutionalization of the Stakeholders’ Consultative Assembly and the Sugar Industry Development Council as formal mechanisms for policymaking and development planning; the activation of a proposed Committee on Sugar Substitutes in coordination with other regulators to address market distortions and public health concerns; and tighter oversight of molasses imports.
According to the stakeholders, these measures are critical to rebalancing supply and demand, preventing further price declines, and providing greater predictability for industry players.
Meanwhile, the Department of Agriculture (DA) and the SRA have extended the moratorium on sugar imports until the end of the harvest period or beyond, citing stronger domestic raw sugar production and the need to prioritize locally produced sugar.
Agriculture Secretary Francisco Tiu Laurel Jr. said the policy, initially announced on October 15, may be extended through the end of the milling season or even until December, depending on actual stock levels, following improved raw sugar output last year.
To help stabilize prices and support farmers, Tiu Laurel said the government will also implement a raw sugar buying program, with purchases to be held as buffer stock for up to 90 days.
He added that the decision came after months of consultations with industry leaders that failed to yield consensus, even as farmgate prices continued to decline.
In response to the continued drop in millgate prices, the House Committee on Agriculture is set to hold a public consultation in the third week of January, according to Negros Occidental 3rd District Representative Javier Miguel Benitez.
Separately, NFSP President Enrique Rojas, in a letter to SRA Administrator Pablo Luis Azcona, criticized the proposed third Voluntary Purchase Program that includes preferential allocation for future sugar imports. Rojas said the proposal effectively guarantees additional importation and would further harm sugar farmers over the long term.
He argued that regardless of how the program is framed, it rests on the assumption of future imports, with participating traders eventually benefiting from preferential import allocations. While the scheme may temporarily absorb some excess supply, Rojas warned that it would ultimately ensure the entry of more imported sugar into an already saturated domestic market.
Instead of the proposed voluntary program, Rojas said the government should directly purchase excess sugar stocks at prices that are fair to farmers.
