The National Congress of Unions in the Sugar Industry of the Philippines (NACUSIP TUCP) and the Agrarian Reform Beneficiaries Council (ARB Council) are calling on the Sugar Regulatory Administration (SRA) to classify 100 percent of the country’s sugar production as “B” (Domestic Market) for Crop Year 2026–2027.
In a joint position paper submitted to the regulatory agency, labor and agrarian leaders highlighted mounting production shortfalls driven by severe pest infestations and unpredictable weather patterns.
An exclusive domestic allocation is critical to protect local farmers, mill workers, and consumers from severe price volatility and premature market flooding from foreign imports, NACUSIP President Roland de la Cruz said Wednesday, Sep. 30.
The urgent call for protection comes as SRA projections estimate raw sugar production for Crop Year 2026–2027 at just 1.662 million metric tons, falling far short of the expected domestic demand of 2.0 million metric tons, he said.
De La Cruz warned that the continuing spread of the Red Stripe Soft Scale Insect (RSSI), combined with erratic rainfall, dry spells, and financing constraints among smallholder farmers, creates a precarious supply environment.
Under these conditions, he said that setting aside any portion of local production for export or alternative allocations would artificially shrink local supplies, inflate consumer prices, and destabilize the domestic market.
Beyond stabilizing market supply, a 100 percent “B” classification serves as an essential safety net for the country’s rural workforce, de la Cruz said.
The Philippine sugar industry directly supports more than 700,000 plantation workers, mill employees, sugarcane cutters, and agrarian reform beneficiaries who produce over 80 percent of the nation’s sugar output, he pointed out.
In past crop years, premature or excessive sugar imports severely depressed millgate prices, eroding farmgate earnings, stalling milling operations, and forcing widespread job cuts across sugar-producing regions, he said.
Highlighting the urgency of the situation, de la Cruz said that classifying all locally produced sugar for domestic consumption acts as a vital protective shield for the agricultural sector.
With projected yields falling short of national demand, de la Cruz stressed that allocating every bag of sugar to the local market is a necessary step to safeguard the livelihoods of farmworkers and ensure national food security.
He called on the SRA to lock in the 100 percent domestic allocation immediately at the start of the crop year, enforce strict supply monitoring, and prioritize local yields before considering any secondary importation programs.
Aligning their petition with the SRA’s legal mandate under Executive Order No. 18—which directs the agency to maintain fair prices and protect local producers—NACUSIP TUCP and the ARB Council urged regulators to decouple export rights from import privileges to prevent speculative trading.
The groups also requested full transparency and direct inclusion of labor and agrarian representatives in all future policy consultations.
By locking in a full domestic allocation, union and farm leaders maintain that the government can uphold food security, protect rural wages, and maintain economic stability across the nation’s sugar-producing provinces, they said.*
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