By CESAR JOLITO III
The Philippine sugar industry is no longer merely in crisis but is now facing what planters describe as a near-total market collapse, as sugar prices plunge to historic lows and trading activity grinds to a halt.
In a strongly worded statement, the Binalbagan-Isabela Planters Association (BIPA) said it is issuing its warning “with a profound sense of disheartenment, bordering on absolute indignation,” as farmers witness what it called the systematic destruction of an industry that supports millions of Filipinos.
According to BIPA, millgate prices have fallen to as low as P2,100 per 50-kilo bag, the lowest in more than five years.
This is sharply below production costs, which BIPA estimates to exceed P2,500 per bag as farmers lose money on every unit produced.
BIPA attributed the price crash to an inventory glut, claiming that nearly 1.5 million metric tons of refined sugar were allowed to enter the country over the past three seasons, more than double the required buffer stock.
Despite this oversupply, BIPA noted that retail sugar prices have remained high, highlighting what it called a severe profit imbalance in the industry.
While farmers incur mounting losses, the group said a few traders continue to benefit, leaving both producers and consumers squeezed.
‘No one wants to buy’
BIPA said the situation worsened dramatically last week when bidding for sugar reportedly drew zero buyers — an unprecedented development that effectively signaled a complete cessation of trade.
“For the first time in recent memory, there is no one willing to buy the fruits of our labor,” the group said, describing sugar, once dubbed “sweet gold,” as having become “worthless in our own domestic market.”
BIPA stressed that the current conditions go beyond normal price fluctuations, warning that farmers are now left without income to service loans, feed their families, or justify planting for the next crop year.
The local planters groups laid much of the blame on the Sugar Regulatory Administration (SRA), accusing the agency of failing to take proactive steps to protect local producers.
They said the SRA ignored repeated calls for a floor price mechanism or a direct government buying program, instead offering “voluntary programs” and a “wait-and-see” approach as the market deteriorated.
It further criticized the agency’s handling of sugar importation and its alleged failure to effectively implement the Sugar Industry Development Act, which was designed to improve productivity and reduce production costs.
According to BIPA, this left farmers vulnerable to a market flooded with cheap imports and competition from artificial sweeteners.
Delays could be ‘fatal’
BIPA is now demanding immediate government intervention, warning that delays of even a few days could be fatal to the sector.
The group underscored the industry’s economic importance, saying the sugar sector contributes an estimated P96 billion annually to the economy, employs around 700,000 workers, and supplies the food and beverage industry, which accounts for roughly half of the country’s total manufacturing output.
In addition to emergency market measures, BIPA called for a full audit and leadership review of the SRA to determine why preventive actions were not taken as the industry spiraled toward what it described as an economic catastrophe.
“We beseech the government to act and save the Philippine sugar industry,” BIPA said, warning that without swift intervention, authorities will soon be dealing “not with a struggling sector — but a dead one.”/CJ, WDJ