DA Maintains Stance: No Sugar Imports for the Current Milling Season
The Department of Agriculture (DA) has reiterated its firm policy against importing sugar for the ongoing milling season, signaling a deliberate move to stabilize prices and support local producers amid market uncertainty. In a statement released on Wednesday, October 15, the DA reinforced the position initially issued by the Sugar Regulatory Administration (SRA) to address the volatile market conditions affecting raw sugar prices.
Recent reports indicated that prices for raw sugar were depressed during the first bidding on Negros Island, sparking concern among farmers and industry stakeholders. The DA noted that such price levels, if they persist through the 38-week bidding cycle spanning the harvest season, could undermine farmer incomes and the overall health of the domestic sugar sector.
Farmers have voiced worries that weak bidding could become the new norm if market sentiment remains unsettled. Agricultural officials cited hesitancy among major traders, driven by conflicting statements from diverse sugarcane farmer groups, as a key factor behind the subdued purchases in the previous bid.
To restore confidence in the market, Agriculture Secretary Francisco Tiu Laurel and SRA Administrator Paul Azcona underscored that there is no plan to import sugar during the current crop year. “Let us be clear—there is, and never was, any talk of an importation program for crop year 2025-2026,” Laurel stated, emphasizing that any discussion about imports would only commence after the domestic milling season yields firm production data.
The SRA has pegged the start of the milling season for the current crop year at October 1, with projections suggesting the season could run through May or June of the following year. The crop year itself starts on October 1 and ends on September 30, 2026. As part of its market-stabilizing framework, officials indicated that any future imports would be classified as “C” or reserve sugar, thereby limiting their direct impact on the domestic market.
Beyond the import stance, both Laurel and Azcona agreed on maintaining a two-month buffer stock of refined sugar to shore up supply and price stability. This reserve is seen as a buffer against any unexpected supply shocks that could destabilize local prices and aggravate farmer concerns.
Dave Sanson, a member of the SRA board representing sugar farmers, welcomed the government’s approach, saying it reassures the industry that policymakers are prioritizing stability. “It’s a welcome development, and we hope this stabilizes prices now that speculation has been addressed,” Sanson noted. The government’s commitment to supporting the sector reflects broader efforts to balance domestic consumption needs with export opportunities and agricultural sustainability.
Under Sugar Order No. 1, the SRA designates the country’s sugar production for the crop year according to market needs and supply outlooks. Current classifications designate most output for domestic use (category “B”), with a smaller portion allocated for exports (category “A” for raw sugar destined for the United States, “C” for reserves, and “D” for export to other markets). Since 2022, the output category has remained in the domestic-focused “B,” as production has lagged behind demand.
Industry observers forecast an 8% drop in sugar production for the current crop year, projecting output at about 1.92 million metric tons (MT) compared with 2.08 million MT last year. Contributing factors include infestation risks from the red-stripe soft scale insect (RSSI) and the adverse effects of extreme weather, both of which threaten yields and market stability. In light of these challenges, the government’s no-import policy aims to bolster producer confidence while ensuring a steady supply for domestic consumers.
As the milling season unfolds, all eyes will be on production figures and how the market responds to the DA and SRA’s stabilization measures. If domestic milling shows resilience and production targets are met, the administration may consider a calibrated approach to imports in the future. For now, the priority remains safeguarding the industry, stabilizing prices, and supporting farmers through a challenging season.
