By JEN BAYLON
The sugar industry in Negros Occidental is bracing for significant challenges following the announcement of higher tariffs on goods in the United States under the administration of President Donald Trump.
In an exclusive interview yesterday, United Sugar Producers Federation (Unifed) President Manuel Lamata expressed concerns about the potential “very bad effect” on sugar exports to the US.
“We export raw sugar for refining in America. But with a 17 percent cost increase, it might no longer be profitable for traders to sell sugar to the US,” Lamata said.
“This could make it too costly to continue,” he added.
Lamata clarified that the tariff on certain goods will not affect planters directly but will impact traders and exporters.
To mitigate the situation, Lamata suggested exploring alternative markets.
“We can sell to the world market. The purpose is to export. We are at the peak of milling season, and we have a lot of sugar in Negros,” he said, stating that local sugar production reaches 300,000 metric tons a month, while local consumption is about 180,000 metric tons per month.
“What we’re doing is taking out that oversupply and selling it, then bringing it back after milling season so that prices stabilize and don’t drop too much,” he added.
The Philippines has a US reciprocal tariff of 17 percent, the second lowest among members of the Association of Southeast Asian Nations.
Earlier, the Sugar Regulatory Administration (SRA) announced that the Philippines is set to ship over 66,000 metric tons of raw sugar to the US this month.
SRA Administrator Pablo Luis Azcona said the exportation was under Sugar Order No. 2, which requires exporters or importers to first purchase locally produced sugar before receiving an equivalent allocation and is therefore performance-based.
“We have written to the USDA [US Department of Agriculture]. They have responded. The amount we have is 66,000 metric tons. The cause of the difference is the different measuring units. The US uses a different metric system compared to ours, so we will export 66,235. This is a voluntary program,” Azcona said.
However, the SRA has yet to issue an official response regarding adjustments to export policies or strategies to counteract the tariff increase.
“I believe the SRA is writing to the Department of Agriculture to get information on whether this is final or just a bluff by Trump — which I doubt,” Lamata said.
With Negros Occidental contributing significantly to the Philippines’ national sugar supply, any disruption in exports could ripple through local economies and global markets alike.
For now, Unifed and other industry stakeholders are closely monitoring developments as they prepare for potential shifts in trade dynamics.
“We’ll have to wait and see what happens,” Lamata said. / With reports from PNA / JB, WDJ