NFSP on Low Sugar & Molasses Prices

The National Federation of Sugarcane Planters (NFSP) watched in distress as sugar and molasses prices have dropped below production cost of marginal sugar farmers since the start of Crop Year 2025-2026.

What is most alarming is the plunge to about P2,100.00 per 50-kilo bag in some sugar mills and lately to as low as P2,000.00 per bag in Mindanao. We have not seen these very low price levels for the past five crop years.

We have seen that the main reason for this steep decrease in sugar prices as well as in molasses prices is directly caused by over importation, which resulted to the oversupply of sugar in the domestic market.

Like all commodities, sugar and molasses prices are dictated by the law of supply and demand. When supply is low and demand is high we experience favorable prices. But when domestic sugar and molasses supply overwhelms domestic demand, then we suffer from these severely low prices.

Another major concern of the sugar industry is the use by large food and beverage companies of fructose sugar (usually HFCS) which is cheaper than locally produced cane sugar since it is mass-produced abroad (mostly from corn), and enter the country with lower tariffs.

The National Federation of Sugarcane Planters is calling on the Sugar Regulatory Administration (SRA) and the Department of Agriculture to enact policies that will establish clear and transparent guidelines in importation of sugar and molasses such that any importation will be limited only to the exact volume of domestic shortfall.

Only with the enactment of clear and transparent importation guidelines can we ensure that our sugar farmers will be assured of stable and sustainable prices for our sugar and molasses.

Our federation is united with the other sugarcane farmers federations in supporting the call for a Congressional Inquiry in Aid Legislation on the decrease in the Millgate Price of Domestically produced sugar and molasses and to identify existing gaps in existing laws and provide for measures to address this very important issue affecting the sugar industry.

We hope that our humble contributions in this public hearing would be of help to the Committee in its formulation of measures in addressing the issue at hand.*