A robust and modern agriculture cannot do without reforms in the sugar industry.
The sugar sector, per official data, contributes about P90 billion to the Philippine economy annually. Sugarcane is planted in 17 provinces in the Philippines with an estimated 84,000 farmers tending over 400,000 hectares of land.
But just like any other crop, sugarcane is at the mercy of the weather, drought in particular, unless modern farming methods are introduced to withstand the uncooperative climate.
Last year’s drought had a telling effect on Philippine sugar production. The Sugar Regulatory Administration (SRA) has conceded that the country’s raw sugar production in the current crop year 2024-2025 could fall below 1.8 million metric tons (MT), making it one of the lowest levels in two decades due to the devastating effects of El Niño.
El Niño as well as La Niña present a double whammy for farm crops. The lack of adequate support and training for farmers, compounded by a broken supply chain, further exacerbates the issue.
Notwithstanding the poor production, the government reassured the public there is ample supply and has put on hold any decision on the need for sugar imports until the middle of the year.
Agricultural authorities, perhaps, should heed the advice of the Department of Science and Technology (DOST). It has already warned that due to the anticipated decrease in supply, the cost of sugar and sugar-containing products will rise significantly.
Other key commodities are also in short supply. The government, for one, thought it best to declare a food security emergency on rice—an admission of a broken supply chain and the need for long-term solutions.
This cycle of artificial intervention may persist unless the government takes real action by implementing strategic reforms and a well-thought-out, consistent approach to agriculture. Without urgent measures, consumers will continue to bear the burden of rising prices.
A recent SWS survey commissioned by the Stratbase Group showed that 58 percent of Filipinos see the government’s actions to curb soaring commodity prices as insufficient.
The government, thus, should not add to the burden of consumers and must ensure the ample supply of essential goods, like sugar, by considering imports without delay and not waiting for the last minute to make crucial decisions that could burden consumers even further.
Sugar importation, of course, is a stop-gap measure. Modern farming techniques and support to sugarcane growers are the long-term solutions to bring down the price of the commodity.
Fully implementing the Sugarcane Industry Development Act (SIDA) approved in April 2015 will increase the country’s sugar output and raise farmers’ income.
The law mandates the government to provide P2 billion to the industry, with 15 percent allocated for grants to block farms under the Block Farm Program and another 15 percent for socialized credit under the Farm Support and Farm Mechanization Programs.
SIDA seeks to enhance the competitiveness of the sugarcane industry and maximize the utilization of sugarcane resources. It also aims to improve the incomes of farmers/farm workers, through higher productivity, product diversification, job generation and increased efficiency of sugar mills.
The Philippine Council for Agriculture, Aquatic and Natural Resources Research and Development (PCAARRD) of the DOST fully supports this policy. Other government agencies like the Department of Agriculture, the Department Agrarian Reforms and the SRA should provide similar support.
The PCAARRD noted that concerned government agencies should extend common service facilities, such as farm machineries and implements, grants or start-up funding for the needed production inputs, technology adoption and livelihood and skills training.
Climate change is likewise affecting sugarcane producing areas. The PCAARRD called for an improvement in the varieties of planting materials, establishment of nurseries, a more efficient fertilizer use and improved irrigation systems.
A reformed and modern sugar industry is a step closer to an inclusive economy.
As I’ve said in my previous column, the Philippines should abandon for the moment its dream of achieving an upper middle-income status (UMIC) if it cannot fix the problems of the agriculture sector, especially rice and sugar farms.
E-mail: rayenano@yahoo.com or extrastory2000@gmail.com