Farmers Anticipate Higher Mill Prices as Artificial Sweetener Imports Tighten

MANILA, Philippines — Local sugar producers are hopeful of better millgate prices as the government tightens imports of artificial sweeteners, according to an industry group. The United Sugar Producers Federation (UNIFED) said the higher fees imposed on imported artificial sweeteners would push buyers toward local sugar, resulting in stronger mill prices. “This will improve the millgate prices of raw sugar because commercial buyers will be buying local first,” UNIFED president Manuel Lamata told The STAR. The Sugar Regulatory Administration tightened the country’s rules on the importation of artificial sweeteners through Sugar Order (SO) 5, ending years of largely unregulated entry. The SO imposed a P25-per-kilo clearance fee on the importation of artificial sweeteners, along with regulatory clearance from the agency. The order covered sucralose, aspartame, saccharin, acesulfame potassium, processed stevia, sucralose, aspartame, saccharin and acesulfame potassium, among others. Lamata noted that tighter rules on artificial sweeteners also align with the government’s health drive, stressing that these products are chemically processed and pose health risks. The products are commonly used in the manufacture of beverages, concentrates, ice cream, coffee/tea mixes, sugar substitutes, food preparation and supplements. Despite an ongoing infestation of the red-striped soft scale insect (RSSI) in sugarcane farms, Lamata said local sugar producers could still meet the industry demand. He added that the government should establish a program requiring sugar users to prioritize locally produced supply, allowing imports only when domestic stocks are exhausted and shortfalls arise. “In other words, no more free-for-all. Buy local and support the local farmers first,” he added. The country’s sugar industry has been contending with the RSSI infestation, stripping the sugarcane of its fluids and reducing its sugar content by up to 50 percent.