Bait-switch strategy | Sugar orders could open import liberalization ‘backdoor’

Posted by siteadmin
January 28, 2026
Posted in HEADLINE

By CESAR JOLITO III

Local labor and industry groups have raised alarm over newly issued sugar orders by the Sugar Regulatory Administration (SRA), warning that the measures could effectively liberalize sugar imports and threaten the livelihood of hundreds of thousands of workers and small farmers.

In a statement released yesterday, the Save the Sugar Industry Movement (SAVE-SIM), led by convenor Wennie Sancho, together with the General Alliance of Workers Association (GAWA), criticized Sugar Orders No. 2 and 3 issued on January 9 but disclosed to the public only during a consultation on January 23.

SAVE-SIM and GAWA described the twin orders as a “bait-and-switch” strategy that favors traders and opens the door to increased sugar imports.

They warned that rewarding traders with import privileges after purchasing domestic sugar would result in more foreign sugar entering the local market, potentially depressing prices and undermining local producers.

Sugar Order No. 2 establishes a voluntary purchase program covering 400,000 metric tons (MT) of raw “C” or reserve sugar for the 2025-2026 crop year.

Under the scheme, traders who buy and hold the stock for 90 days will be given priority in future sugar import programs, allowing them to import cheaper refined sugar.

Meanwhile, Sugar Order No. 3 allocates an export quota of 100,000 MT of raw sugar to the United States for 2026, also linked to a similar voluntary purchase requirement.

According to SAVE-SIM and GAWA, more than 700,000 sugar workers and small farmers nationwide could be affected if cheaper imported sugar floods the market, pushing local producers out of business.

The organizations also questioned the SRA’s assertion that the import allocations involve only “C” sugar and are not intended for direct consumption.

They said this distinction could serve as a technical loophole that may be exploited, leading to market distortion.

Concerns were likewise raised over transparency and stakeholder participation, noting that the orders were made public only weeks after issuance and during a single consultation.

SAVE-SIM and GAWA urged Congress and the Department of Agriculture to immediately suspend Sugar Orders No. 2 and No. 3 and to conduct a comprehensive review of the policies.

“The protection of the local sugar industry is vital to rural development, food security and cultural heritage,” the groups said, adding that any move toward sugar import liberalization must be stopped to safeguard the future of Filipino sugar producers.

Earlier, Sancho cautioned that implementing a sugar import liberalization scheme without adequate safeguards could result in widespread economic displacement, particularly among sugar workers and their families who rely heavily on the industry for survival.

“The unrestricted entry of imported and subsidized sugar is disastrous. It could lead to the death of local sugar production and the eventual collapse of the sugar industry,” Sancho said.

He urged the national government to immediately reassess the policy and consider its long-term impact on local economies, especially in sugar-dependent regions.

According to Sancho, any trade policy should strike a balance between economic growth and the protection of workers whose livelihoods are at risk./CJ, WDJ

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