The Confederation of Sugar Producers Associations Inc. (CONFED) has called on the Sugar Regulatory Administration (SRA) to act swiftly and transparently on the sharp decline in millgate prices of sugar and molasses, reports Digicast Negros.
In an open letter dated October 10, CONFED president Aurelio Gerardo J. Valderrama Jr. expressed deep concern over the worsening condition of the sugar industry, noting that both sugar and molasses prices have dropped significantly compared to last year. He warned that this decline is hurting the livelihoods of planters, millers, and other industry stakeholders nationwide.
“Given the recent corruption scandals that have shaken public trust, we urge you to act decisively and transparently in the interest of those most affected,” Valderrama wrote to SRA Administrator Pablo Luis Azcona.
He attributed the crisis to policy decisions that allowed excessive importation of sugar and molasses, which, he said, flooded the market, drove down prices, and left producers struggling to find buyers. He also pointed to the unregulated entry of artificial sweeteners that have further weakened market demand for locally produced sugar.
Valderrama described the situation as “a full-blown market destabilization,” questioning why the SRA, which has access to real-time production and withdrawal data, failed to foresee the consequences of oversupply and sugar substitutes. He also asked whether proper risk assessments were conducted before approving additional import volumes.
Citing Section 2(B) of Executive Order No. 18, series of 1986 — which mandates the SRA to maintain a balance between sugar production and market demand to ensure fair and stable prices — Valderrama said the agency must protect all stakeholders from foreseeable risks.
“This is not just an unfortunate market trend but the result of poor planning, lack of coordination, and failure to safeguard the industry,” he said.
CONFED outlined several key questions for the SRA:
What is the agency’s plan to stabilize sugar and molasses prices?
What protective measures will be implemented if prices continue to fall?
How will the oversupply be addressed to rebalance the market?
What steps will be taken to regulate the use of artificial sweeteners?
Valderrama said CONFED remains open to working with the SRA, provided that all discussions are conducted in a transparent and inclusive manner. He stressed that sharing accurate and timely data is essential for understanding and solving the crisis.
“True leadership demands accountability,” he said. “The future of our industry depends on the decisions made today.”
