DA Studies Tariff Hike on Artificial Sugar Imports to Protect Local Industry
DA Eyes Tariff Hike on Artificial Sugar to Protect Local Industry

The Department of Agriculture (DA) is currently conducting a thorough review of a proposed increase in tariffs on imported artificial sugar. This strategic move aims to provide robust protection for the nation's local sugar industry, which has faced significant challenges due to rising import volumes.

Government Collaboration on Tariff Proposal

Agriculture Secretary Francisco Tiu Laurel Jr. has confirmed that he has already engaged in discussions with Finance Secretary Frederick Go regarding this initiative. The response from the finance department has been notably positive, indicating strong inter-agency support for measures designed to bolster domestic agricultural sectors.

Impact of Surging Import Volumes

Data released by the department reveals a concerning trend: in 2025, the volume of artificial sugar entering the country increased by a substantial 200,000 tons. This influx has directly impacted demand for locally produced sugar, creating competitive pressures that threaten the sustainability of Philippine sugar farmers and producers.

Moderate Tariff Adjustments Planned

While the current tariff rate stands at 5 percent, officials have clarified that any increase will be moderate and carefully calibrated. The goal is not to impose excessively high tariffs but to implement adjustments sufficient to level the playing field, ensuring that local products remain competitive in the market without triggering undue price spikes for consumers.

Broader Regulatory Focus on Sugar By-Products

In addition to artificial sugar, the department is also closely monitoring and regulating the importation of molasses. This by-product of sugar production presents another challenge to the industry, and enhanced oversight is deemed necessary to prevent market distortions and support overall sector health.

The DA's comprehensive approach underscores a commitment to safeguarding agricultural livelihoods while maintaining market stability. Further updates on the tariff proposal are expected as evaluations progress.