Zubiri: Farmer Losses Highlight Need to Fully Use Sugar Dev’t Fund

Manila: Sustained losses among sugar farmers due to falling mill gate prices and rising production costs have prompted renewed calls for the full utilization of the Sugar Development Fund (SDF) to provide immediate support to the sector. Senate Majority Leader Juan Miguel Zubiri on Tuesday said the full use of the SDF would cushion losses and sustain the local sugar industry amid current market pressures.

According to Philippines News Agency, Zubiri emphasized that the SDF, which receives about PHP1 billion annually under the Sugar Industry Development Act, should translate into concrete assistance on the ground, particularly during periods when farmers are operating at a loss. "We pour a billion pesos into the Sugar Development Fund every year, so I hope that this is reaching our farmers. Kapag ganitong nalulugi na ang mga magsasaka, dapat saluhin na sila ng SRA by providing better infrastructure, credit and research and development support (When farmers are already operating at a loss like this, the SRA should step in by providing better infrastructure, credit, and research and development support)," Zubiri said.

He further highlighted that maximizing the use of the fund could help stabilize farmer incomes and protect sugar workers, noting that effective deployment may also support calls to increase the fund's allocation in the future. Zubiri pointed out that mill gate prices have dropped sharply since the start of the milling season in October 2025, worsening the financial strain on farmers who rely on seasonal income to prepare for the next crop cycle.

Citing data from the Sugar Regulatory Administration, Zubiri noted that about 84 percent of the country's 88,000 sugar farmers cultivate less than five hectares of land, making them especially vulnerable to sudden price declines. He added that many sugar farmers, particularly agrarian reform beneficiaries, have limited capital and little capacity to absorb prolonged losses. "Hindi naman malaki ang kapital ng mga magsasaka ng asukal (Sugar farmers do not have large capital)," Zubiri said.