93 Industry Leaders Nationwide Call for Sugar Board’s Replacement

In a manifesto signed by planters federations, industry labor unions, ARB associations and industry organizations, stakeholders called for the replacement of Sugar Board members, immediate implementation of a government sugar-buying program, adherence to the DA’s declaration of “no sugar importation for 2026”, and resumption of congressional investigations on the collapse of mill gate prices of sugar and molasses, among other proposals.

The 93 signatories represent the vast majority of industry stakeholders. They include the Sugar Council, represented by the Board of Trustees of CONFED, NFSP and PANAYFED, which together account for more than 50% of farmers’ share in national sugar production; NACUSIP, the largest umbrella organization of labor unions in the sugar industry, which counts among its members 100% of labor unions in sugar mills in Negros, and 90% of labor unions in sugar mills throughout the country; agrarian reform beneficiaries, now comprising up to 80% of sugarcane farms;

Sugar Industry Foundation, Inc (SIFI), which implements socio-economic programs for industry dependents; Philippine Sugar Research Institute (PHILSURIN), the industry’s research and development arm; and numerous other large unaffiliated planters, associations and cooperatives.

Foremost among the groups’ demands is the replacement of the Sugar Board, the body that approves and signs all sugar orders authorizing the importation of refined sugar, the abuse of which is blamed for the drop in the price of locally produced sugar. For neglect of duty, inefficiency, grave misconduct, and loss of confidence, the manifesto seeks the replacement of Sugar Board Chairman DA Sec. Francisco Tiu-Laurel and Sugar Board Members SRA Administrator Pablo Azcona, Planters’ Representative Dave Sanson and Millers’ Representative Mitzi Mangwag.

The 93 industry leaders also urge government to immediately implement a government-funded “Purchase and Park” program to temporarily reduce excess sugar inventory from the domestic market in order to stabilize sugar prices, and retention of the program as a Price Stabilization mechanism whenever needed in the future.

The current practice of the SRA allows private importers to purchase local raw sugar to relieve excess inventory, rewarding them with allocations for the importation of refined sugar. This led to over-importation, resulting to excess inventory of refined sugar. As a consequence, refineries have seen less need to refine local raw sugar, causing local raw sugar inventories to swell and mill gate prices to drop.

Last year, Agriculture Secretary Francisco Tiu-Laurel declared that there would be no sugar importation until the end of 2026. The manifesto exhorts the DA to adhere to its commitment.

This is crucial, the group said, since there is already a sugar order declaring the amount of refined sugar to be brought in. Sugar Order #3, Series of 2025-2026, Section 3.5, mentions an importation replacement ratio of 1:3, where for every bag of raw sugar exported, three bags of refined sugar will be imported. While no date has been set, the signatories of the manifesto would like to ensure that the DA will not go back on its earlier pronouncement that no importation will happen until the end of 2026.

The manifesto further requests concerned legislative bodies to resume the congressional investigations, initiated by Negros Occ. 3rd District Rep. Javi Benitez in the House of Representatives and promised by Sen. JV Ejercito in the Senate, to ascertain the circumstances behind the collapse in prices of sugar & molasses, and enact legislation to prevent its recurrence.

Other proposals forwarded by industry stakeholders include amendments to the Sugar Industry Development Act (SIDA) to make it more attuned to actual needs of various sectors of the industry; Congressional Oversight on the implementation of SIDA-funded projects; amendment to TRAIN LAW to tax sugar substitutes based on volume equivalent sugar instead of actual volume; Strict monitoring and regulation of imported molasses and sugar substitutes; strengthening of the Biofuels Program to reduce the country’s dependence on imported fuel; suspension or elimination of 1% Advance Creditable Withholding Tax on sugar and molasses sales and other proceeds related thereto; and, timely and regular consultations by DA/SRA with the industry through the Sugarcane Industry Stakeholders’ Consultative Assembly (SCA), as mandated by the SIDA.*