By CESAR JOLITO III
The Confederation of Sugar Producers Association Inc. (Confed) has appealed to President Ferdinand Marcos, Jr. for immediate and concrete interventions to stabilize domestic sugar and molasses prices, warning that continued inaction could trigger labor unrest and further weaken one of the country’s key agricultural industries.
In a letter dated yesterday, Confed President Aurelio Gerardo Valderrama, Jr. said the sugar sector is facing a full-blown crisis marked by steep price declines, lower yields and sluggish demand, conditions that have left farmers and millers financially distressed, refineries underutilized and thousands of sugar workers at risk of reduced work hours or displacement.
Valderrama cautioned that frustration in the labor sector is mounting and could spill into street protests if no decisive measures are implemented soon.
Despite the urgency, he said, comprehensive solutions have yet to be put in place.
The Confed chief also took issue with delays at the Sugar Regulatory Administration, which has cited a lack of consensus among stakeholders as a reason for postponing reforms.
Valderrama countered that the proposed Sugar Order No. 2, series of 2025-2026 — anchored on a “4:1:3” incentive scheme that requires traders to buy four units of local sugar, export one and import three — has failed to gain broad industry support, with many stakeholders either rejecting it outright or seeking clearer justification.
While welcoming the government’s decision to halt sugar importations until December 2026 and earlier plans to regulate molasses imports, Valderrama stressed that these steps alone are insufficient to revive prices and restore confidence in the sector.
“Stopping imports is only part of the solution,” he said, underscoring the need for additional measures specifically aimed at raising farmgate sugar and molasses prices and reducing excess local inventory.
Confed has proposed alternatives to the contested sugar order, including a government-financed buying program, the activation of a reserve or “C” sugar program, targeted molasses interventions, a clearer sugar importation policy, and the creation of a technical working group to fast-track solutions.
Valderrama called on both government and industry leaders to engage in serious and immediate discussions while a longer-term policy framework is being developed, warning that prolonged uncertainty could irreversibly damage the industry.
“The fate of an entire industry now rests on the shoulders of government and industry leaders,” Valderrama said.
“It is time to work together — or expire separately,” he added.
Negros Occidental, the country’s leading sugar-producing province, remains heavily dependent on the industry, making price volatility a major concern for thousands of planters, workers and related sectors./CJ, WDJ