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Another Sugar Probe Pushed in Senate Amid Industry Woes

Manila: Another resolution seeking a Senate inquiry into the state of the Philippine sugar industry has been filed with Senator Risa Hontiveros calling for a review of key sugar laws and regulatory policies amid declining competitiveness and persistently high prices. Hontiveros' Senate Resolution No. 298, filed on February 11, follows an earlier measure introduced by Senator Francis Pangilinan, adding momentum to calls in the chamber to reassess the direction of the sugar sector.

According to Philippines News Agency, the resolution directs the Senate Committee on Agriculture, Food, and Agrarian Reforms to conduct an inquiry, in aid of legislation, into the implementation of the Sugar Industry Development Act (SIDA) and to review the charter and regulations of the Sugar Regulatory Administration (SRA). Hontiveros noted that the sugar industry directly employs about 700,000 workers and contributes an estimated PHP76 billion to PHP90 billion annually to the economy, while five to six million Filipinos depend on it indirectly for their livelihood.

Despite this footprint, the sector continues to face low farm productivity, high production costs, and inefficient milling operations. Hontiveros stated in a news release that although the laws were designed to strengthen the sugar industry and improve the incomes of farmers and workers, the sugar in the Philippines remains costly, the mills are lagging, and farmers are struggling to compete.

The resolution highlighted that while local production reached a four-year high in 2025, it met only 87 percent of domestic demand. It added that Philippine refined sugar remains costly compared to major producers such as Brazil, Thailand, and Colombia. Beyond structural inefficiencies, the resolution flagged the combined effects of pests, damage from Tropical Storm Tino, the fall in world sugar prices in late 2025, and the growing importation of sugar substitutes.

Additionally, the resolution pointed to reports from the SRA on the alleged misdeclaration of refined sugar entering as 'Other Sugars (1702),' which could result in government revenue losses and weaken demand for locally produced sugar. Hontiveros remarked that retail prices have remained elevated despite authorized importation and the decline in global prices during the last quarter of 2025.

In her statement, Hontiveros emphasized that the system is failing both farmers and consumers, with farmers burdened by rising costs and low productivity, while consumers suffer from high sugar prices. The resolution further underscored that SIDA, enacted in 2015, provides PHP2 billion annually since 2016 for productivity programs, infrastructure support, research and development of sugar by-products, human resource development, and financial assistance to small farmers.