The Department of Agriculture (DA) has stood firm on its decision not to import sugar for the current milling season in a bid to stabilize sugar prices that have been weighed down by market uncertainty.

In a statement on Wednesday, Oct. 15, the DA reiterated the government policy earlier issued by the Sugar Regulatory Administration (SRA) to address concerns over the low prices of raw sugar.

According to reports, low prices were recorded during the first sugar bidding held on Negros Island last week.

Farmers were quick to raise concerns, fearing that such prices might persist throughout the weekly sugar biddings, which run for 38 weeks over the harvest season.

The DA said that initial discussions with sugar traders reveal hesitation in the market, fueled by conflicting statements from various sugarcane farmer groups.

“As a result, major traders refrained from purchasing sugar during the previous bidding,” it said.

To restore market confidence, Agriculture Secretary Francisco Tiu Laurel and SRA Administrator Paul Azcona affirmed that no sugar importation is planned until the end of the milling season.

The SRA has set the start of the milling season for the current crop year on Oct. 1, with the season projected to conclude between May and June next year. The crop year likewise began on Oct. 1 and will end on Sept. 30, 2026.

“Let us be clear—there is, and never was, any talk of an importation program for crop year 2025-2026,” said Tiu Laurel.

Tiu Laurel said any discussion about sugar imports would only begin once the domestic industry has completed significant milling and obtained firm production figures.

He added that if there are any imports during the crop year, they will be classified only as “C” or reserve sugar, preventing their direct entry into the domestic market.

As another measure to ensure market stability, both Tiu Laurel and Azcona agreed that a two-month buffer stock of refined sugar should be maintained at all times.

Dave Sanson, an SRA board member representing sugar farmers, said the government’s move reaffirms the administration’s support for the industry.

“It’s a welcome development, and we hope this stabilizes prices now that speculation has been addressed,” said Sanson.

Under Sugar Order No. 1, the SRA designated the entire sugar production in the crop year as “B” or for the domestic market due to an anticipated tighter supply.

The agency classifies raw sugar output as “A” for raw sugar to be exported to the United States, “B” for domestic consumption, “C” for reserves, and “D” for export to the world market.

The classification for the country’s sugar output has remained at “B” since 2022 as output still lags behind overall demand.

The SRA expects sugar production this crop year to drop eight percent to 1.92 million metric tons (MT) from the previous year’s 2.08 million MT.

The lower estimate is attributed to the potential of sugarcane infestation from the spread of the red-stripe soft scale insect (RSSI), as well as the impact of extreme weather conditions.