The Sugar Regulatory Administration (SRA) is set to roll out a new strategy aimed at ensuring stable sugar prices while supporting local farmers, with a draft order that will allow traders to secure preferential allocations for sugar imports in exchange for purchasing locally produced sugar. The goal is to stabilize farm gate prices, which have fluctuated in recent years, by creating a buffer between domestic production and market demand.
SRA administrator Pablo Azcona revealed that the signing of the draft sugar order is expected to happen within the month, with the program slated for implementation in the 2024-2025 crop year. The plan will see a maximum of 300,000 metric tons (MT) of raw sugar being earmarked for the scheme, with participants including farmers, sugar millers, refiners, beverage makers, and licensed traders who are in good standing with the SRA. This figure mirrors last year’s similar initiative, though it may still be adjusted based on current market conditions.
The voluntary purchase of locally produced sugar will be used to create reserves for up to 90 days, a move that could help smooth out price fluctuations during the peak of the harvest season. By giving traders access to prioritized import allocations in exchange for supporting the local market, the SRA protects local farmers from volatile prices and prevents disruptions in the sugar supply chain.
The initiative has received praise from local sugar stakeholders, particularly farmer groups. The Sugar Council, which represents three of the country’s largest sugar federations, has expressed its support for the plan, commending the SRA for creating a program that addresses both price stability and farmer welfare.
This new order could have significant commercial implications. For traders, it offers a pathway to secure priority import slots, while for consumers, it promises more consistent pricing at the retail level. As of early January, the Department of Agriculture reported retail refined sugar prices ranging from P74 to P90 per kilogram, with raw sugar priced at around P2,600 per 50 kg bag at mill sites.
The SRA’s move is expected to create a win-win scenario for both local producers and consumers by promoting a more balanced and resilient sugar market in the Philippines.
