Planters warn sugar order may worsen industry crisis

By Dolly Yasa

BACOLOD CITY — Major sugar planters’ groups are warning that the proposed Sugar Order No. 2 could further depress domestic sugar prices and deepen the crisis facing the Philippine sugar industry if implemented.

The National Federation of Sugarcane Planters has formally opposed the proposal, saying the planned export-import mechanism risks worsening an already severe oversupply in the local market.

In a letter dated Jan. 8, 2026, NFSP President Enrique D. Rojas said the scheme would allow traders to buy four bags of locally produced sugar, export one bag, and import three, a formula the group believes would aggravate market imbalances rather than stabilize prices.

The NFSP recalled that similar arrangements under Sugar Order No. 2, as well as Sugar Orders No. 5 and No. 8 during Crop Year 2024–2025, were among the key factors that led to the current sugar glut and a sharp drop in millgate prices.

“The sharp drop in sugar prices is directly linked to excessive importations in past crop years,” the federation said, warning that further imports “under the guise of an export-import program” would fail to address the root causes of low farmgate prices.

While welcoming the Marcos administration’s assurance—particularly by Agriculture Secretary Francisco Tiu Laurel Jr.—that there will be no sugar importation until December, the NFSP said farmers urgently need more direct and immediate government intervention as many are nearing economic collapse.

The NFSP also expressed support for proposals put forward by the Confederation of Sugar Producers Associations, saying these recommendations could offer both short-term relief and long-term stability for the industry.

CONFED has warned that the sugar sector is facing a deepening crisis marked by falling prices, declining yields, weak domestic demand, and growing financial distress among farmers, millers, and sugar workers.

In a separate Jan. 8, 2026 letter to President Ferdinand R. Marcos Jr., CONFED President Manuel Lamata Valderramasaid the situation has left sugar refineries underutilized and placed thousands of workers at risk of losing their jobs, with labor groups already threatening protests if no immediate action is taken.

Valderrama criticized the Sugar Regulatory Administration for delays in implementing solutions, saying the agency has cited the lack of a unified industry position as a reason for inaction.

He said the proposed Sugar Order No. 2 for Crop Year 2025–2026, which includes the so-called 4:1:3 incentive scheme, has failed to gain broad stakeholder support and continues to raise unresolved concerns across the industry.

CONFED also called for the creation of a technical working group composed of government and industry representatives to finalize funding sources and implementation details for a proposed sugar buying program.

“The consequences of an unresolved sugar industry crisis are not difficult to imagine,” Valderrama said. “It is time to work together or expire separately.”