Following the consultation with sugarcane farmers, millers, refiners, and industry stakeholders held on January 23, government leaders from both the Executive and Legislative came together today to respond to the urgent concerns raised from the ground and to chart a clearer, fairer path forward for the sugar industry.
Senator Francis “Kiko” Pangilinan, Congressman Mark Enverga, Congresswoman Eleanor Bulut-Begtang, Agriculture Secretary Francisco Tiu Laurel Jr., Agrarian Reform Secretary Conrado Estrella III, and Sugar Regulatory Administration Administrator Pablo Luis Azcona addressed declining farmgate prices, refining constraints, and market uncertainty, aligning immediate responses with longer-term structural solutions.
The leaders agreed on the following strategic interventions:
1. Initiate stakeholder consultations to propose amendments to the Sugar Industry Development Act (SIDA). This ensures the law reflects current industry realities, specifically regarding refining performance, importation policy alignment, and institutionalized stakeholder consultation.
2. SRA shall provide assistance to sugarcane farmers.
3. The DA and DAR, in coordination with relevant agencies, will assess both the use of purchase contracts as collateral to enhance farmer financing and the integration of small farmers, including ARBs/ARCs, into assistance programs according to established guidelines.
4. The SRA will continue regular stakeholder consultation prior to the issuance of any Sugar Orders concerning imports or exports.
5. The DA and SRA will review existing policies on the entry, use, and market impact of artificial sweeteners, in consultation with stakeholders, and institute measures to safeguard the welfare of the sugar industry.
- The SRA and the DA will update and make available comprehensive data on:
● Actual refinery output versus rated capacity;
● Trends in raw versus refined production;
● Current disposition of production (refining, power generation, trade);
● Importation volumes and geographic distribution.
- DA and SRA to periodically review importation programs to ensure that policies are aligned with actual domestic refining output and prevailing market conditions.
- DA and SRA to study measures to incentivize domestic refining to prevent the accumulation of excess raw sugar that depresses farmgate prices.
- DA and SRA to assess the geographic movement of sugar, particularly in areas experiencing oversupply, to avoid market distortions.
- DA, DAR, and SRA to revisit mechanisms to support more stable purchasing arrangements and long-term buying commitments between farmers, refiners, and industrial users.
These steps will be carried out in close consultation with stakeholders, with the shared aim of building a stable, transparent, and sustainable sugar industry that protects farmers while ensuring stable and reliable supply for consumers and industry.
We thank Representative Javi Benitez for initiating the January 23 public consultation, and Governor Bong Lacson, Representatives Albee Benitez, Jeffrey Ferrer, Dino Yulo, Mercedes “Cheding” K. Alvarez, and Abang Lingkod Party-list Representative Manman Ko for their utmost support.
Technical working groups from the concerned agencies and stakeholders will convene to provide assistance for the fulfillment of these agreed directives.