By CESAR JOLITO III
Industry stakeholders have warned that the domestic sugar sector is facing a deepening crisis driven by oversupply and falling prices, urging the government to abandon plans that could trigger further importation and instead directly purchase excess local sugar at fair prices.
In a letter dated yesterday, Enrique Rojas, president of the National Federation of Sugarcane Planters (NFSP), appealed to Sugar Regulatory Administration (SRA) Administrator Pablo Luis Azcona to reconsider the proposed third Voluntary Purchase Program that includes preferential allocation for future sugar imports.
Rojas, in his letter, said the current crop year (CY) opened with an estimated 800,000 metric tons (MT) of raw and refined sugar stocks, including about 200,000 MT carried over from previous importations.
This was further compounded by the entry of 138,020.70 MT of imported refined sugar under Sugar Order No. 8 (CY 2024-2025) as of November 23.
According to NFSP, the bloated supply has pushed sugar prices to their lowest levels in several years since the start of the current milling season, severely affecting farmers’ incomes.
“The implementation of a voluntary purchase program that tacitly guarantees future importation will only worsen the imbalance between supply and demand,” Rojas said, warning that traders would only participate if they expect higher future returns tied to preferential import allocations.
While acknowledging that the program could temporarily reduce excess stocks, the group stressed that it would ultimately open the door to more imported sugar entering an already saturated domestic market.
Instead, the federation proposed direct government buying of excess sugar stocks at prices fair to farmers, with the government selling the sugar later at a modest profit once the milling season ends.
The concerns echo broader warnings raised by sugar industry leaders in a separate letter dated December 19, addressed to President Ferdinand Marcos Jr., which described the sector as being “under acute stress.”
The NFSP letter cited declining millgate prices, excessive inventories, weak demand, rising production costs, and crop losses due to adverse weather and the infestation of the red striped soft-scale insects.
Industry groups also warned that storage facilities are nearing capacity and that worsening farm incomes threaten the long-term viability of the sugar industry.
They called for a “no sugar import policy” for the next 18 months unless domestic stocks fall below a critical level and for strict limits confining imports to raw sugar for local refining.
The appeal was signed by several prominent officials and stakeholders, including Negros Occidental Governor Eugenio Jose Lacson and Iloilo City Mayor Raisa Treñas, reflecting support from local governments, planters, millers, workers, and research institutions.
Earlier, the national government extended the sugar import ban until December 2026 and announced a buying program aimed at stabilizing prices.
Agriculture Secretary Francisco Tiu Laurel, Jr. said the government is prioritizing local producers while ensuring a stable domestic sugar supply.
Meanwhile, the Department of Agriculture and the SRA have reaffirmed a moratorium on sugar imports to help stabilize domestic prices and protect local producers.
In a press release dated December 19, Agriculture Secretary Francisco “Kiko” Tiu Laurel, Jr. said the import ban, first announced in October, will remain in effect until the end of the harvest or possibly through the milling season, depending on actual stock levels.
Laurel said the decision was based on improved raw sugar production and the need to prioritize locally produced sugar.
The government will roll out a raw sugar buying program, with purchases held as buffer stock for up to 90 days.
Under the plan, up to 400,000 MT of raw sugar will be purchased as reserve stock, supporting the allocation of a 100,000-MT export quota to the United States./CJ, WDJ