Sugarcane planters and labor groups are urging President Marcos to step in amid the steep decline in millgate prices for sugar, reported Inquirer.net
The National Federation of Sugarcane Planters (NFSP) joined forces with the National Congress of Unions in the Sugar Industry of the Philippines (Nacusip); the Philippine Agricultural, Commercial, Industrial Workers Union (Paciwu); the Congress of Independent Organizations (CIO-UNI); and the Nacusip Agrarian Reform Beneficiaries (ARB) Council to back the measures proposed by the Confederation of Sugar Producers Associations (Confed), aimed at halting further drops in sugar and molasses prices.
As per the news report, NFSP president Enrique Rojas warned in a letter to the President that “sugarcane farmers are seriously considering abandoning sugarcane cultivation due to unprofitable millgate prices this crop year.”
On December 12 last year, sugar prices fell to P2,103 per 50-kilo bag—the lowest in four years. By comparison, the average sugar price during the same period in 2024 exceeded P2,500 per bag. Rojas noted that prices this crop year have been below production costs, causing farmers to lose between P200 and P400 per bag.
The Sugar Regulatory Administration (SRA) has proposed a sugar export-import program to address the issue, but most industry players doubt it will solve the problem, Rojas said.
According to Rojas, the SRA’s plan may offer only a short-term price increase and risks perpetuating over-importation, the main factor behind the current low sugar prices.
Instead, NFSP recommends a direct government purchase of domestic sugar, which could then be sold at a modest profit after the milling season. Rojas also called for the creation of a technical working group to establish the mechanics of such a program.
Additionally, he urged the formulation of a sugar importation policy to provide clear guidelines on when and how much sugar can be imported. In the short term, classifying imported sugar as “C” or reserve is expected to boost domestic sugar purchases by end-users. He also suggested activating the National Biofuels Board to help manage molasses supply and demand.
“We have suffered long enough … we have waited far too long for a fair, honest, and well-intentioned solution,” the letter to President Marcos stated, signed by Nacusip president Roland de la Cruz, Paciwu senior executive vice president Benjie de la Cruz, CIO-UNI secretary general Joseph Brian Perez, and Nacusip ARB Council chair Elisama Gregorio.
The groups represent the majority of organized laborers in sugar mills, refineries, and farms. Many of their members became landowners and sugar farmers through the government’s agrarian reform program.
“Today, the sugar industry is dominated by small farms owned by agrarian reform beneficiaries, who now make up the majority of farmers’ associations,” the groups noted.
“As a result, when the sugar industry faces problems, our members are the first and hardest hit,” they added, emphasizing that Confed’s proposed solutions are the most viable way to mitigate the negative effects of over-importation on industry stakeholders.
