House launches probe into collapse of millgate price of domestic sugar

THE HOUSE of Representatives Committee on Agriculture and Food has launched an inquiry into the sharp drop in sugar millgate prices, citing concerns over the impact of imports and the growing use of sugar substitutes.

The inquiry follows three separate resolutions filed by Representatives Javier Miguel L. Benitez, Audrey Kay T. Zubiri, and Howard A. Guinto, urging the committee to investigate the price collapse, particularly in the major sugar-producing provinces of Negros Occidental and Bukidnon.

In a committee hearing on Wednesday, Chairman Wilfrido Mark M. Enverga said industry participants blamed excessive imports of refined sugar as the primary reason for the market collapse.

“Millgate prices have fallen to as low as P2,000 to P2,100 per 50-kilo bag, which is significantly below the average production cost of P2,500,” Mr. Enverga said, citing consultations with sugar producers and millers.

Sugar Regulatory Administration (SRA) Administrator Pablo Luis S. Azcona said at the hearing that an increase in raw sugar production but a decline in refinery operations may have also blunted demand and millgate prices.

The SRA reported that raw sugar production in crop year 2024-2025 increased 8.48% to 2.09 million metric tons (MT), but refined sugar output fell 10.6% to 618,388 MT.

“Our main oversupply is in raw sugar, which is caused by the big increase in production last year. Refined volume is only equivalent to around 650,000 to 660,000 of raw sugar equivalent. If our refineries don’t refine more, we’ll have a greater problem as farmers plant more,” Mr. Azcona said.

The committee also raised concerns over the surge in artificial sweeteners and sugar substitutes, which have increasingly been used by food and beverage manufacturers.

Mr. Azcona said import volumes of artificial sweeteners and sugar substitutes last year surged to 835,000 MT in sugar equivalent.

“The concern is very evident and very real. The continual increase in sugar substitute imports is hampering our sugar demand,” he said.

Mr. Azcona said there is currently no regulation governing the import of artificial sweeteners and sugar substitutes.

He added that the SRA only started gathering accurate import data on sugar alternatives in 2025 and is currently studying drafting a policy to regulate these products. — Vonn Andrei E. Villamiel