Philippine Sugar Stable Prices Offer Relief; Output Exceeds Targets, But Pest Threat and Unauthorized Sugar Imports Pose Risks

Notably, while the total volume of sugarcane milled increased by 5% from 21.45 million MT in the previous cropping year to 22.46 million MT this year, the average recovery rate declined sharply by 9% year-on-year, dropping from 1.80 50-kilogram bags per ton of cane (Lkg/TC) to 1.63 Lkg/TC. SRA mentioned that although farmers managed to expand cane tonnage, sugar extraction efficiency remained a challenge, largely due to climatic stress. However, SRA Administrator Azcona emphasized that fair farmgate prices, averaging ₱2,734/Lkg, played a critical role in encouraging both new and returning growers to cultivate sugarcane despite high production costs. These price signals helped offset the negative impacts of El Niño and recent typhoons on the sector.

Emerging threats

Red-Striped Soft Scale Infestation

On May 22, 2025, the SRA confirmed the first recorded infestation of red-striped soft scale insects (RSSI) in Negros Occidental, posing a serious threat to next crop year’s sugarcane production. As of May 30, 2025, approximately 186 ha of sugarcane plantations have been affected, impacting at least 115 farmers. Scientifically known as Pulvinaria tenuivalvata, RSSI can reduce sugar content by half, leading to big losses for farmers. The infestation has been confirmed in six areas in the province, including Victorias, Cadiz City, Manapla, Sagay City, the Hawaiian area, and Saravia.

While the SRA assured that the current sugar supply remains unaffected as the milling season is ending, the infestation poses a threat to the next planting cycle, with some farmers already starting to replant for CY 2025–2026. The pest is believed to have originated from Luzon, where it was first detected in Pampanga in 2022 and continues to persist. To prevent further spread, the SRA urged farmers to avoid sourcing planting materials from infected areas and stressed the need for strict quarantine measures.

For consumers, the current sugar supply remains stable; however, the RSSI infestation threatens future harvests and may lead to higher prices if the pest spreads and significantly reduces production. For farmers, the pest poses a serious economic risk, potentially cutting sugar content and profitability by up to half, which could discourage replanting and strain livelihoods. Continued vigilance, strict quarantine protocols, and timely support from government agencies will be crucial in mitigating production losses and protecting both farmer incomes and market stability.

Unauthorized Sugar Imports 

On May 29, 2025, the Bureau of Customs (BOC) seized two shipments of refined sugar from Thailand, valued at approximately ₱9 million, at the Port of Manila (POM). The shipments have entered the country without the required import permits or allocation from the SRA. Over 2,000 sacks of sugar were confiscated, including bags falsely labeled as “sweet mixed powder.” The operation was led by BOC, in coordination with the SRA, DA, and POM.

Agriculture Secretary Francisco Tiu Laurel Jr. warned that such illegal trade activities threaten the progress made by the local sugar industry, especially now that production and prices are improving. He warned that smuggling hurts Filipino farmers, confuses market pricing, and weakens public trust. In response, the DA ordered the SRA to blacklist the importers involved. This seizure, along with the enforcement of the Anti-Agricultural Economic Sabotage Law, shows the government’s commitment to protecting farmers and maintaining a fair and stable local sugar market.

Government Initiatives

• SRA Sugar Purchasing Program

The SRA launched a second round of its voluntary raw sugar purchasing program under Sugar Order No. 2 for CY 2024–2025, covering up to 500,000 MT to stabilize farmgate prices ahead of the peak harvest season. The program allowed eligible traders to sell raw sugar at a premium on a first-come, first-served basis, with purchased sugar temporarily classified as “C” (reserved) for up to 90 days. In return, participants are prioritized in future import allocations at a 2:1 ratio of locally purchased to imported sugar. Designed to maintain a sufficient domestic supply while ensuring fair producer returns, the program helped control the decline in farmgate prices, contributing to the rebound and stabilization of farmgate prices observed from January to May 2025. The initiative also promoted a more level playing field in the sugar trade, reinforcing market confidence and supporting farmer incomes during the high-production period.

• SRA Formed Task Force to Contain RSSI

To contain the spread of RSSI, the SRA formed a task force led by Board Member David Andrew Sanson to coordinate response efforts, including quarantine enforcement through the Department of Agriculture (DA). The National Crop Protection Center (NCPC) at the University of the Philippines Los Baños (UPLB) has identified five promising insecticides, namely buprofezin, dinotefuran, phenthoate, pymetrozine, and thiamethoxam. Still, a second field trial in Negros Occidental is required before the Fertilizer and Pesticide Authority (FPA) can grant emergency-use approval, as these are not yet registered for sugarcane use. SRA Administrator Azcona stressed the urgency of early intervention, warning that the infestation could disrupt next year’s crop if not controlled. He emphasized that sustaining gains in sugar output will depend on coordinated action to prevent further spread. 

• Advancing Sugarcane Resilience Through Drought Tolerance and Disease Resistance Toward Climate-Smart Agriculture

To strengthen the resilience and productivity of the Philippine sugarcane industry, the Department of Science and Technology – Philippine Council for Agriculture, Aquatic and Natural Resources Research and Development (DOST-PCAARRD) implemented two complementary projects in partnership with the Philippine Sugar Research Institute Foundation, Inc. (PHILSURIN). Addressing critical challenges such as prolonged dry periods and major diseases like smut and downy mildew, the projects aim to develop improved sugarcane varieties with enhanced drought tolerance and disease resistance. The first project, led by Ms. Rosalyn Luzaran, will utilize somaclonal variation through in vitro techniques to induce genetic diversity and accelerate the selection of resilient varieties.

The second project, led by Ms. Graziella Tabulinar, will utilize the genetic traits of wild sugarcane relatives, namely Saccharum spontaneum and Pennisetum purpureum, to develop hybrid varieties that combine stress resistance with high sucrose content. Both initiatives are expected to make significant contributions to long-term breeding programs by enriching genetic diversity and providing new materials for varietal improvement. Launched in collaboration with PHILSURIN, the two projects were recognized as crucial to sustaining R&D momentum and supporting the competitiveness and sustainability of the country’s sugarcane industry.

Market Outlook and Implications

Sugar prices are expected to remain stable in the near term, supported by improved production and timely government interventions. As of May 2025, raw sugar output reached 1.82 million MT, surpassing initial forecasts due to improved yields, an expanded harvested area, and key interventions, including cropping calendar adjustments and enhanced irrigation. The second round of the SRA’s voluntary purchasing program helped absorb excess supply and stabilize farmgate prices, reinforcing confidence among producers and contributing to steady wholesale and retail price levels.

However, risks remain. The confirmed RSSI infestation in Negros Occidental poses a risk to future supply, which could drive prices higher by late 2025 if left unmanaged. Simultaneously, the recent seizure of unauthorized sugar imports at the POM emphasized the vulnerability of the local market to illegal trade, which distorts price signals, undermines policy mechanisms such as import allocation, and threatens to erode the gains achieved by local producers. 

For consumers, current supply conditions help ensure price stability. For farmers, sustaining profitability will require both continued production support and stronger market protection. While the purchasing program has helped cushion high costs, threats like the RSSI infestation and smuggled imports may reduce income and erode confidence. Sustaining market stability will require swift pest containment, regulatory support, and continued investment in resilient varieties to protect both consumer welfare and farmer livelihoods.