Sugar millers nix automatic import privilege

January 16, 2026 | 12:00am

MANILA, Philippines — A group of sugar millers has renewed its call to halt any guaranteed import replenishment scheme for raw sugar, warning that it could drown the local industry in oversupply.

In a statement, the Philippine Sugar Millers Association (PSMA) expressed its opposition to any proposed order seeking to link domestic sugar buying or exports to an automatic import privilege.

“Linking exports to a guaranteed import replenishment that compensates exporters can have a serious long-term negative impact on the viability of the sugar industry,” the group said.

In February 2025, the Sugar Regulatory Administration (SRA) issued an order outlining the guidelines for the voluntary, limited-volume purchase of locally produced sugar to qualify for the future import program.

A month later, a separate order called for the export of raw sugar to the United States to meet the Philippines’ tariff quota. This gives eligible participants the privilege to avail themselves of future import programs.

The PSMA, however, emphasized that this mechanism has been the “primary cause” of the existing supply glut challenges that resulted in lower millgate prices.

“It is urgent that any importation volume must only be for an actual shortfall. Doing otherwise puts the viability of this industry in jeopardy,” the group said.

Latest SRA data showed that farmgate prices of raw sugar stood at P2,174 per 50-kilo bag as of Dec. 21, 2025. This was lower by 14 percent compared to the P2,537 per 50-kilo bag recorded in the same period in 2024.

According to the PSMA, the country’s current sugar inventory levels were unprecedented due to the importation of sugar over the past three years.

“It is imperative that current inventory levels be brought back to a healthy stock to use ratio which is equivalent to two months national consumption requirements,” it said.

The group likewise urged the SRA to exhaust all its existing regulatory powers over the use of imports.

Recently, Agriculture Secretary Francisco Tiu Laurel Jr. approved the export of 100,000 metric tons of raw sugar to the US to support farmgate prices and reduce domestic supplies.

“We will export raw sugar under the US quota system as soon as possible to provide the industry immediate relief,” Tiu Laurel said.

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