The Philippine sugar industry is sounding a loud alarm, calling for immediate presidential intervention to prevent a full-blown economic and social crisis. The Confederation of Sugar Producers Association Inc. (Confed) has formally appealed to President Ferdinand Marcos Jr. to implement concrete steps that would increase the prices of locally produced sugar and molasses.
An Industry on the Brink of Collapse
In a letter dated January 8, 2026, Confed President Aurelio Gerardo Valderrama Jr. outlined the severe challenges crippling the sector. He described an industry in deep crisis, plagued by precipitous price drops, reduced sugar yields, and soft domestic demand. This toxic combination is pushing farmers and millers into financial distress, leaving sugar refineries underutilized, and threatening sugar workers with massive job losses.
Valderrama issued a stark warning about rising social unrest, noting that the labor sector is already preparing to take to the streets if the government fails to act. He emphasized that despite the urgency, no solid solutions have been put in place to address the escalating problem.
Government Plans Meet Stakeholder Resistance
The letter also addressed the current policy deadlock. Valderrama pointed out that while the Sugar Regulatory Administration (SRA) has blamed a lack of unified stakeholder stand for delays, the reality is more complex. The SRA's proposed Sugar Order (SO) No. 2, Series of 2025-2026, which includes a "4:1:3" incentive scheme (buy 4, export 1, import 3), has failed to gain majority support.
Many stakeholders have outright rejected the plan or have raised serious questions that remain unanswered. Confed acknowledged the government's positive steps, such as the announcement to halt all further sugar importations until December 2026 and plans to regulate molasses imports. Valderrama thanked the President, the Secretary of Agriculture, and the Sugar Board for listening but stressed that these actions are only a partial solution.
Proposing an Alternative Path Forward
Moving beyond criticism, Confed presented a set of alternative recommendations to the contested SO No. 2. Their proposed measures include:
- A government-financed buying program.
- A strengthened "C" or Reserve sugar program.
- A dedicated molasses program.
- A clear and predictable sugar importation policy.
- The formation of a technical working group to flesh out details.
Valderrama made a direct plea to both the government and industry leaders, stating, "We are not giving up. We cannot give up and surrender our fate to the negative consequences of government policy, even if well-intentioned." He urged the administration to create space for serious discussions on urgent fixes while a longer-term policy framework is developed.
He concluded with a powerful and sobering call to action: "It is time to work together or expire separately." The message is clear—the fate of the entire Philippine sugar industry now rests on the decisive actions of its leaders in both the public and private sectors.
