MANILA — The Department of Agriculture (DA) has approved the Sugar Regulatory Administration’s (SRA) plan to export 100,000 metric tons of raw sugar to the United States to reduce domestic oversupply and help lift sagging farmgate prices.

The move comes after last crop season saw a 130,000-ton increase in local sugar production, which contributed to lower prices for farmers.

“We will export raw sugar under the US quota system as soon as possible to provide the industry immediate relief,” Agriculture Secretary Francisco P. Tiu Laurel Jr. said. He added that allocating part of the record harvest for export under the US tariff-rate quota will help absorb excess raw sugar and ease downward price pressure.

The export plan coincides with the DA and SRA’s extension of the moratorium on sugar imports until December this year, maintaining protection for domestic producers as raw sugar output improves and inventories remain elevated. Despite the extended import freeze, local sugar prices continue to languish.

The US import quota was initially set at around 143,000 metric tons but was reduced to 100,000 tons this season due to delays in the Philippines’ decision to participate. Quota prices under the US system are typically higher than world market levels, offering a more lucrative option for Philippine exporters than global spot markets.

“Since the new administration entered, our raw sugar production has been increasing, and we have activated the US exports. It will be the third year now, and the volume exported is growing as well, from 33,000 tons to 66,000, and now 100,000 tons. The last two years exports of raw sugar has helped increase our farmer prices, and this year, this is a much needed step that our farmers need. We cannot take the suggestion of just sitting and doing nothing. Our farmers are the backbone of this industry, they need our intervention,” Sugar Regulatory Administrator Pablo Luis Azcona said.

Azcona also highlighted a surge in artificial sweetener and other sugar substitute imports, now equivalent to over 500,000 metric tons of raw sugar, which are diluting demand for locally produced sugar and contributing to price softness.

Secretary Tiu Laurel said the DA will monitor the importation of artificial sweeteners and sugar substitutes and may consider regulating their entry if market disruptions persist. He also plans to ask the Department of Health to review potential public health implications of widespread use of intense sweetening agents.

“There are a lot of long term solution suggestions, but we need a short term solution to quickly help the farmers now. All the suggestions sent to us will be looked into and considered, as it entails time, and our farmers cannot wait,” Azcona added.

Officials said the US export approval is a pragmatic short-term response to rebalance supply and demand while tapping higher quota prices, but broader measures may be needed to achieve sustainable price stability in the sugar sector.