CONFED opposes import replenishment for 100,000-MT sugar export

By Dolly Yasa

BACOLOD CITY — The Confederation of Sugar Producers Associations (CONFED) reiterated that the government should not automatically allow “import replenishment” alongside the Department of Agriculture–Sugar Regulatory Administration (DA-SRA) plan to export 100,000 metric tons (MT) of raw sugar to fill the 2026 United States quota, a move intended to reduce domestic supply and lift farmgate prices.

CONFED said it welcomes the export initiative, but warned that pairing it with an automatic replenishment mechanism could blunt the price support expected from pulling volume out of the local market.

“The industry will most certainly appreciate any price improvement arising from this measure,” said CONFED President Aurelio Gerardo J. Valderrama Jr.

Even so, CONFED reiterated its position that the export program should not be accompanied by an automatic import replenishment scheme, pending the issuance of a Sugar Order that will lay down the operational details of the program.

The group said any future sugar importation meant to address domestic shortfalls should be governed by clearly defined guidelines, particularly on volume, timing, implementation mechanics, and stakeholder consultations.

The DA has said the export program is meant to address excess raw sugar supply after production rose by about 130,000 metric tons in the last crop year, a buildup that has weighed on prices paid to farmers.

The DA announced its approval of the SRA export plan on Jan. 12, 2026, framing the move as an immediate relief measure aimed at rebalancing supply and demand in the domestic market.

CONFED issued its statement Tuesday, aligning itself with the government’s goal of price recovery while signaling it will oppose any policy step that could reintroduce large volumes of imported sugar without clear rules.

The organization also pointed to earlier positions taken by industry stakeholders after the government declared an import freeze, which CONFED said was expected to help stabilize prices before the new export plan was announced.

The DA and SRA have said the ban on sugar importation has been extended until December 2026, a policy intended to protect local producers even after the crop year ends in September.

In its statement, CONFED said it submitted earlier a proposal for a government buying program, anchored on policy measures designed to mitigate the effects of over-importation.

CONFED said it remains firm in pursuing both short-term solutions and a long-term institutional framework to prevent a recurrence of what it called the current crisis in the sugar industry.

“We, along with our stakeholders, wish the government success in their announced undertaking, and we remain committed to helping ensure the sugar industry’s survival,” Valderrama said.

The DA’s export plan centers on the Philippines’ allocation under the U.S. tariff-rate quota system, where shipments typically receive better pricing conditions than sales into the world market, according to reports on the approved program.

Business reporting on the approval noted that the Philippine allocation for the current season is 100,000 metric tons, reduced from an original quota of 143,000 metric tons after delays related to the country’s participation, adding another layer of urgency to completing the export window.

For planters, millers, and traders, the dispute over “import replenishment” is not a technicality, but a market-moving question about whether sugar sent out for export will be offset by new imports that could rebuild inventory and weaken the price signal from the export program.

Industry players have long argued that sugar prices in the Philippines are especially sensitive to sudden policy shifts because domestic output fluctuates by crop year, while consumption and industrial demand can change quickly with broader economic activity.

CONFED’s call for a Sugar Order before any replenishment underscores the group’s push for formal, transparent rules that define who can import, when imports can arrive, and how volumes are calibrated against actual supply gaps.

The DA has not publicly detailed whether replenishment is being considered as an automatic step, but agriculture groups have frequently urged the government to avoid setting expectations that exports will be followed by equivalent imports, especially in a market currently described as oversupplied.

The DA’s rationale for exports has been anchored on the view that the inventory buildup from last year’s production increase has contributed to depressed prices at the farm level, and that reducing domestic volume can help restore profitability for growers.

In Negros Occidental, the country’s largest sugar-producing province, any sustained decline in farmgate prices can ripple into employment and local spending because sugarcane production supports a wide network of farm labor, trucking, milling, and ancillary services during peak harvest months.

The export plan, if executed quickly, could provide some of the “immediate relief” cited by the DA, but producers say the longer-term issue is whether policy can prevent recurrent swings between import-driven oversupply and sudden supply tightening.

CONFED’s renewed push for a government buying program reflects the idea that public-sector purchasing can temporarily remove supply from the market when inventories are high, while policymakers develop longer-term mechanisms for inventory management and import controls.

The broader policy debate has been shaped by past controversies involving sugar importation, including disputes over timing and volume that industry groups say have worsened volatility and undermined confidence in planning for future crop cycles.

For now, CONFED’s message is that the export program can help, but only if the government resists policy steps that could quickly reintroduce supply through imports before prices recover.

The group said it expects the forthcoming Sugar Order to clarify the export program’s operational details, and it wants any decisions on importation to be grounded in measurable market conditions and conducted with stakeholder consultation.