Business Bayani PH

Philippine officials hit pause on strict new sugar import rules last week after businesses warned the changes could send food prices soaring and leave store shelves empty. The sudden reversal hands a win to food and drink companies fighting tighter controls on sweets like honey, chocolate and syrup.

The Sugar Regulatory Administration (SRA) delayed implementing Sugar Order No. 6 just days before its Feb. 1 start date. The rules would have required extra paperwork for importing common food items like pancake syrup, chewing gum and even some types of white chocolate.

“We’re glad they listened,” said Enunina Mangio, president of the Philippine Chamber of Commerce and Industry. She said the delay prevents “needless headaches” for companies already struggling with high sugar costs.

The move comes after manufacturers and business groups raised alarms at a Jan. 10 meeting hosted by the American Chamber of Commerce. They argued the rules — meant to protect local sugar farmers — would instead create shipping delays and hurt companies that rely on imported ingredients.

What’s at stake

The postponed order mainly affects:

• Basic sugars (like white and brown)
• Liquid sweeteners (honey, maple syrup)
• Candies, gums and certain chocolates

Food companies say Philippine sugar costs 30-40% more than in neighboring countries. Many rely on imports to keep products affordable. But farmers argue cheap imports undercut their livelihoods.

Why it matters

SWS data shows nearly 1 in 4 Filipino families struggles to afford food by the end of 2024, with hunger rates soaring to their worst level since COVID-19 lockdowns.

The December 2024 hunger rate reached 25.9% of families (approximately 7.2 million households), a notable increase from 22.9% in September 2024. The 2024 annual average of 22.9% nearly doubled the 2023 average of 10.7%.

Manufacturers warn tighter import rules could:

• Add 2-3 weeks to delivery times
• Raise prices on items like soda, bread and canned fruit
• Worsen existing shortages of some goods

Mangio stressed the need for compromise: “There will always have good results in open dialogues and proper consultations. The government and private sector should work together for the benefit of both the local farmers and consumers.”

Behind the conflict

The delayed rules aimed to stop “misdeclared” imports — a tactic some traders use to avoid taxes. Officials claim this practice costs the government ₱12 billion ($214 million) yearly.

But companies call the rules redundant. Most imported sweeteners already pass quality checks, they argue. The new paperwork would force them to duplicate work and wait longer for shipments.

What’s next

Regulators promise to review the rules but haven’t set a new start date. Key next steps:

• A cost-benefit study on the rules’ economic impact
• Talks between farmers, businesses and officials
• Possible changes to reduce red tape

The delay comes as inflation hit 6.6% for food items in January — the highest in 14 months. Economists warn prolonged sugar shortages could push that number higher.Ⓒ