Sugar Regulatory Administration (SRA) chief Pablo Luis Azcona has strongly dismissed allegations that his agency is not being transparent about plans to export sugar to the United States. He labeled such claims as "quite premature" and indicative of ignorance about established industry procedures.
Clarifying the Export Order Process
Azcona issued the statement on Thursday, January 15, 2026, following calls for clarity from the National Congress of Unions in the Sugar Industry of the Philippines (Nacusip-TUCP). The union had questioned the details of a proposal to ship 100,000 metric tons of sugar to the US.
"To set the record straight, the SRA was also waiting for the official release of the Sugar Order," Azcona explained. He emphasized that Nacusip-TUCP, with decades of industry experience, should know that any sugar order follows a strict protocol. This process involves approval by the Sugar Board, recording at the University of the Philippines (UP), and then official publication.
Azcona urged the union to consult with allied sugar leaders to understand how the export decision was made. He stated this move, though delayed, was intended to help improve persistently low sugar prices.
Roots of the Current Sugar Price Crisis
The administrator traced current market issues back to mid-2025. He revealed that the SRA had warned of a potential shortfall in refined sugar as early as April 2025. When refineries closed in June, they had only produced 618,388 metric tons, far below the annual demand of over 1 million metric tons.
"Nobody complained then," Azcona noted, referring to a prior arrangement where traders bought sugar at a premium in exchange for importation rights while prices were favorable.
He also expressed surprise at Negros Occidental Governor Eugenio Jose Lacson's suggestion to import raw sugar instead of refined sugar during the price dip. Azcona clarified that the criticized import order was for refined sugar to meet a domestic shortfall, not raw sugar which would worsen local oversupply.
Stakeholder Consultations and Market Challenges
Azcona detailed a series of meetings held to address falling prices. In mid-October 2025, the SRA dialogued with traders who blamed confusing statements from sugar federations about potential imports. Later, a meeting with the Confederation of Sugar Producers Association Inc. (Confed) on propping up prices yielded no results as market forces defied logic.
By early December, the SRA called on exporters to help balance supply, acknowledging that the previous year's large raw sugar production was a key factor in low prices. The agency also announced no sugar importation would occur until December 2026.
"All other stakeholders agreed to the No Import announcement, Sugar Order 2 (SO2), and the planned export to the US," Azcona claimed. This was reportedly echoed to the Philippine Sugar Millers Association (PSMA) by Agriculture Secretary Francisco Tiu-Laurel in mid-December. However, Confed later canceled a meeting with SRA, and PSMA disapproved of SO2.
The Path to the US Export Decision
With prices still stagnant, Secretary Tiu-Laurel decided that if no price movement occurred by January 8, 2026, the Sugar Board would authorize exports to the US. True to this plan, the Sugar Order for exporting 100,000 metric tons was signed on January 9 and forwarded to UP on January 12.
"Now it is officially published on the SRA website, so the claim of lack of transparency is very premature and designed simply to attack government," Azcona concluded, defending the agency's actions amidst the complex challenges facing the Philippine sugar industry.
