The Sugar Regulatory Administration announced Thursday that every kilogram of sugar produced during crop year 2026 to 2027 will be allocated entirely for domestic demand. The directive, set in an October 7 advisory from SRA Administrator Pablo Azcona, will be formalized in Sugar Order No. 1 once all required procedures are completed. All mills, planters, and traders are directed to ensure local production serves domestic needs first.
The decision follows broad agreement across the industry that no export allocations are feasible this season. Production is projected to fall 10.3 percent to 1.66 million metric tons, down from 1.85 million MT the previous crop year. The shortfall stems from the El Niño weather pattern and infestation by the red-striped soft scale insect, which have hit crops hard. Stakeholders noted that exporting sugar—including to the United States—would be difficult to justify to the public amid tight domestic supply.
Crop year runs from September or October through August of the following year. While most mills have already opened, SRA said official pricing trends will take a few more weeks to establish, with the industry aiming for fairer and more stable prices this season. As of October 5, refined sugar retailed at P65 to P95 per kilogram in Metro Manila markets, while washed and brown sugar fetched P64 to P85 per kg. At the close of the last milling season in mid-July, raw sugar averaged P2,205 per 50-kilogram bag at millsites.
The SRA thanked the sector for its cooperation, noting the move is key to addressing challenges and securing a sustainable 2026–2027 crop year.
