• GILBERT P. BAYORAN
Sugar industry stakeholders have reached a consensus to recommend 100 percent B-sugar classification for the 2026-2027 crop year, keeping all locally produced sugar for domestic consumption amid a projected decline in production.
In a statement, the Sugar Regulatory Administration (SRA) said projected output is expected to fall to 1.66 million metric tons (MT) from 1.85 million MT last crop year, largely due to the effects of red-striped soft scale insect infestation and El Niño.
The consensus was reached during a hybrid consultation hosted by the Philippine Sugar Millers Association in Makati City ahead of the issuance of Sugar Order No. 1, which sets the classification and allocation of locally produced sugar at the start of the milling season.
SRA Administrator Pablo Luis Azcona said it was the first time in a long while that representatives of sugar federations, millers, refiners and traders gathered to discuss the classification and arrive at a common position.
“I hope we can make this a regular process of consulting each other. After all, we all want what’s best for our industry,” Azcona said.
The consultation followed proposals from some sugar groups and traders to allocate 4 percent to 10 percent of production as “A” sugar for the US sugar quota.
Azcona said the United States Department of Agriculture has requested the Philippines to fill its 147,000-MT US quota.
However, stakeholders opposing the allocation said exporting sugar amid projected domestic shortages could be difficult to justify to farmers and consumers.
Some traders and federations argued that allocating four to six percent for the US market could benefit farmers if the export price is favorable and could help boost domestic sugar prices.
Luzon Federation of Sugarcane Growers Association president Cornelio Toreja said fulfilling the US commitment could be beneficial if the price offered is attractive, but said the federation would respect the majority consensus for all “B” classification.
The Confederation of Sugar Producers Association Inc., represented by president Aurelio Valderrama, former Negros Occidental governor Rafael Coscolluela, and former E.B. Magalona Mayor Alfonso Gamboa, pushed for an all “B” classification.
The National Federation of Sugarcane Planters president Enrique Rojas, Panay Federation of Sugarcane Farmers’ Danny Abelita, and former congressman Manuel Zubiri of the Mindanao Federation of Sugarcane Planters also supported keeping production for the domestic market.
Representatives of the United Federation of Sugar Producers, Antonio Ramos and Julian Garcia, likewise backed the consensus.
Azcona said another consultation is being planned next month to assess whether sugar prices have improved and determine if the 1.66-million MT production projection is being validated.
He added that the final classification will be set through Sugar Order No. 1. | GPB
