Senate to probe declining sugar industry
A SENATE RESOLUTION calling for a review of the Philippines’ sugar industry has been filed amid concerns over falling competitiveness.
Senate Resolution No. 298, filed by Senator Ana Theresia N. Hontiveros-Baraquel, seeks a review of the country’s sugar development laws, citing persistent challenges for local producers.
Despite the Sugar Industry Development Act, domestic sugar prices remain high, millers struggle to keep up, and producers face competition from imported sweeteners, she said in a statement.
“The competitiveness of the local sugar industry has steadily declined due to low farm productivity, high production costs and inefficient milling operations,” Ms. Hontiveros said.
Under the law, the government allocates P500 million annually to support the sugar sector. Yet, the program has not fully addressed problems such as declining millers, low sugarcane yields and a growing influx of imports.
“The Sugar Industry Development Act was meant to boost the sugar industry’s competitiveness and raise farmers’ incomes, but more than a decade later, its implementation and use needs urgent review as these goals remain unmet,” she said.
The Department of Agriculture has said it is reviewing policies on the import, use and market impact of imported sweeteners.
Ms. Hontiveros noted that the Sugar Regulatory Administration’s rules, particularly on mandatory purchases and buffer stock warehousing, might favor large trader-millers and consolidate market control among a few players.
She called for better policies that would increase cane harvests, lower production costs, protect small farmers and agrarian reform beneficiaries and reduce sugar prices for consumers.
Despite a rise in production last year, the country still lags behind major sugar-producing nations like Brazil, Thailand and Colombia.
Local production hit 2.09 million metric tons during the 2025 crop year, up 8.9% from a year earlier, meeting only 87% of domestic demand.
“Our farmers are struggling with rising costs and low productivity, while consumers continue to suffer from high sugar prices,” the senator said. “The system is failing both farmers and consumers.”
The resolution seeks a review of policies, laws and regulations affecting the sugar sector to ensure a more competitive and equitable industry. — Adrian H. Halili
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