Facing falling farmgate prices and rising inventories, the Department of Agriculture (DA) is turning to the United States (US) market to absorb excess sugar, approving the export of 100,000 metric tons to stabilize the industry without tightening supply for local consumers.

The DA said Monday the move will siphon off surplus raw sugar after last season’s harvest jumped by about 130,000 tons, overwhelming the domestic market and pushing prices down despite earlier policy actions.

Agriculture Secretary Francisco P. Tiu Laurel Jr. said diverting part of the record output to the US under its tariff-rate quota system is intended to immediately ease pressure on producers.

“We will export raw sugar under the US quota system as soon as possible to provide the industry immediate relief,” Tiu Laurel said.

The approval followed the DA and the Sugar Regulatory Administration's (SRA) extended moratorium on sugar imports until December to protect local producers even as inventories remain high.

Under the US quota system, local raw sugar typically fetches higher prices than the global market, offering exporters a better outlet than oversupplied world markets.

The country’s quota was initially set at about 143,000 metric tons but was reduced to 100,000 tons this season after delays in confirming participation.

SRA Pablo Luis Azcona said the export clearance reflects rising production under the current administration.

“Since the new administration entered, our raw sugar production has been increasing, and we have activated the US exports. It will be the third year now, and the volume exported is growing as well, from 33,000 tons to 66,000, and now 100,000 tons.

The last two years exports of raw sugar have helped increase our farmer prices, and this year, this is a much needed step that our farmers need. We cannot take the suggestion of just sitting and doing nothing. Our farmers are the backbone of this industry, they need our intervention,” Azcona explained.

Azcona warned that demand for locally produced sugar is being undercut by a surge in artificial sweetener and sugar substitute imports, which have doubled and now equal more than 500,000 metric tons of raw sugar.

To address potential market distortions, the DA said it will closely track sugar substitute imports and may regulate their entry if needed.

It will also ask the Department of Health to review the public health impact of widespread use of high-intensity sweeteners, citing World Health Organization guidance questioning their long-term benefits.