SRA allocates all sugar output for domestic us

The Sugar Regulatory Administration (SRA) in the Philippines has announced that all sugar production for the 2026 to 2027 crop year will be designated for domestic use only. This decision stems from a forecasted decline in sugarcane harvests, which could reduce local sugar production by 10.3 percent to 1.66 million metric tons from last year's figure of 1.85 million metric tons.

The SRA's directive, issued in Sugar Order 1 dated October 7, classifies 100 percent of sugar production for the upcoming crop year as "B," or domestic market sugar. The agency has also urged all sugar mills, planters, traders, and other relevant parties to ensure that all locally produced sugar will be used domestically, in line with the Sugar Board's approval.

The SRA's move follows a consultative meeting with various stakeholders, where it was agreed that all sugar output should be allocated exclusively for domestic consumption. The regulator expressed appreciation for the cooperation and continued support of the entire sugar industry as they collectively tackle the challenges faced by the sector and strive for a stable and sustainable crop year 2026-2027.

Local sugar production is expected to be significantly impacted by the red-striped soft scale insect affecting sugarcane and weather-related events that have reduced the length of sugarcane. The SRA administrator, Pablo Luis Azcona, attributed the decline in production to these factors. Moreover, the Philippine sugar industry's participation in the US sugar export program will come to an end, as the country will no longer export raw cane sugar to the United States under the current program, which was set to run from October 1, 2026, to September 30, 2027. The Philippines received a 154,386 metric ton raw value quota for this export.

In the past, the Philippines did not participate in the export of raw sugar to the US during the 2021 to 2022 and 2022 to 2023 crop years due to a decline in sugar production. The recent SRA mandate signifies a shift in the country's sugar industry landscape, focusing on domestic consumption rather than international exports.