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Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
NINETEENTH CONGRESS 
First Regular Session 
House Bill No._____ 
Introduced by: Congressman BIENVENIDO M. ABANTE, JR. 
AN ACT 
ABOLISHING THE SUGAR REGULATORY ADMINISTRATION (SRA) 
EXPLANATORY NOTE 
Executive Order No. 18 was issued by former President Corazon 
Aquino on May 28, 1986, to create the Sugar Regulatory Administration 
(SRA) to institute an orderly system in sugarcane production, to establish 
and maintain balanced relation between the production and requirement of 
sugar and its marketing conditions, to promote effective sugar 
merchandising, and to undertake relevant studies needed to formulate 
sugar policies and planning. 
Sugar is a highly regulated industry. There are restrictions on the 
inter-island shipping of sugar; mandatory sharing arrangement between 
sugar mills and sugarcane planters ranging from 60 to 40 percent  to 70 to 30 
percent (planters’ and mill’s share, respectively); mandatory warehouse 
receipt or quedan system that segments the utilization of raw sugar into 
specific uses: exports to the US (A); domestic market (B); reserve (C); and 
world exports (D). 
The Sugar Regulatory Authority or SRA has lately only allocated for 
A and B sugar, with domestic production already falling short of domestic 
requirements. The US Foreign Agricultural Service (US FAS) forecasts sugar 
production in in the Philippines for Marketing Year (MY) 2023 to decline by 
50,000 MT to 2 million MT, as high fertilizer prices lead to reduced yields.  
September 21, 2022
5:37 pm
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Sugar production in the Philippines for MY 2022 is also below target 
because of the damage to sugar farms in December 2021 by Typhoon 
Odette. Lower sugar output prompted the National Government to allocate 
100 percent of our sugar production to the domestic market in MY 2022. 
 
The US FAS expects MY2023 exports of sugar from the Philippines to 
also be zero our country is again expected to not participate in the U.S. 
sugar quota for 2023. Meanwhile, MY 2023 consumption is forecast to stay 
flat at 2.3 million MT.  This is why our country has been reeling from a 
sugar shortage in the past few months.  Add to these problems the 
incompetence and corruption that is prevalent in the SRA – the agency 
tasked to regulate the sugar industry. 
 
SRA data showed that as of July 29, retail prices of raw sugar in 
Metro Manila reached a high of P80 per kilo in supermarkets and P82 per 
kilo in wet markets – compared with a high of P56.85 and P48 per kilogram, 
respectively, last year. Prices of refined sugar, on the other hand, peaked at 
P115 per kilo in supermarkets from just P60 per kilo last year, and soared to 
as high as P96 per kilo in wet markets from P68 per kilo a year ago. 
 
This price level is a huge burden to the budget of ordinary 
households, particularly now that our country is still reeling from the effects 
of the COVID-19 pandemic. Amidst this looming food crisis triggered by a 
problematic sugar industry, the SRA has not helped find any solution.  
 
In fact, the SRA is the problem.  Republic Act 8178 or the Agricultural 
Tariffication Act of 1996 eliminated quantitative restrictions (QRs) on 
importation of agricultural products (except rice, tariffed much later in 
2018), replacing them with more transparent import tariffs. In actual 
practice, importation remained tightly controlled by the SRA, endowed 
with regulatory powers by Executive Order No. 18, and reinforced under 
the Sugar Industry Act of 2015. The SRA also enforces various regulations 
on the domestic sugar industry, notably: 
(i) 
Restrictions on the interisland shipping of sugar; 
(ii) 
Mandatory sharing arrangement between sugar mills and 
sugarcane planters, ranging from 60%- 40% to 70%-30% (planters’ 
and mill’s share, respectively). 
(iii) 
Mandatory warehouse receipt or quedan system that segments the 


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utilization of raw sugar into specific uses: exports to the U.S. (A); 
domestic market (B); reserve (C); and world exports (D). 
The result is crystal clear. While the shielded high domestic price of 
sugar has helped support the sugar industry, domestic sugarcane 
production has not achieved higher productivity; nor has the industry as 
a whole become more competitive over time. On the other hand, it has 
increased the cost of sugar for consumers and for food and beverage 
manufacturers, in turn undermining the competitiveness of the latter.  
Again, the SRA has not offered any solution.  In fact, it has remained to be 
and will continue to be the problem.  Thus, it would be better to abolish the 
agency now and transfer its powers, functions and budget to the 
Department of Agriculture.  
In view of the foregoing, approval of this bill is earnestly sought. 
BIENVENIDO M. ABANTE JR.        


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Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
NINETEENTH CONGRESS 
First Regular Session 
House Bill No._____ 
Introduced by: Congressman BIENVENIDO M. ABANTE, JR. 
AN ACT 
ABOLISHING THE SUGAR REGULATORY ADMINISTRATION (SRA) 
Be it enacted by the Senate and House of Representatives of the Philippines in 
congress assembled: 
SECTION 1. The Sugar Regulatory Administration (SRA} created 
under Executive Order No. 18, shall be abolished within six (6) months 
after the approval of this Act. 
SECTION 2. The powers and functions of exercised by the SRA 
shall be transferred to the Department of Agriculture (DA). For this 
purpose, all records and documents relating to the regulation of the 
sugar industry shall be transferred to the DA.  
SECTION 3.  In coordination with the Commission on Audit, a 
physical inventory and complete accounting of the properties, assets 
and equipment of the SRA shall be made by the DA within sixty (60) 
days after the effectivity of this act. 
SECTION 4. Officials and employees of the SRA may be 
absorbed by the DA on the basis of merit and fitness; Provided, that 
officers and employees who shall be separated from the service as a 
result of the abolition of the SRA shall receive separation or retirement 
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and other benefits to which they are entitled under existing laws. 
 
Any SRA officer and employee who is re-employed in the 
government service for which he/she has been paid gratuity, shall 
refund the unearned portion of such gratuity before his or her 
reemployment. 
 
SECTION 5. All contracts and agreements entered into by the 
SRA prior to the effectivity of this Act shall remain in full force and 
effect unless otherwise terminated, modified or amended for lawful 
cause. 
 
SECTION 6. The unexpended appropriations of the SRA under 
the current General Appropriations Act shall be transferred to the DA. 
Thereafter, such amount as may be necessary for the additional 
functions of the DA pursuant to this Act shall be included in its annual 
appropriation. 
 
SECTION 7. All references to the SRA in Republic Act No. 10659 
[AN 
ACT 
PROMOTING 
AND 
SUPPORTING 
THE 
COMPETITIVENESS OF THE SUGARCANE INDUSTRY AND FOR 
OTHER PURPOSES] or any other part thereof inconsistent herewith are 
deemed repealed, modified or amended accordingly. 
 
SECTION 8. Executive Order No. 18 and all other laws, executive 
orders, rules and regulations or any part thereof inconsistent herewith 
are deemed repealed, modified or amended accordingly. 
 
SECTION 9. Separability Clause. In case any provision of this Act 
is declared unconstitutional or invalid, the other provisions hereof 
which are not affected thereby shall continue ‹n full force and effect. 
 
SECTION 10. Effectivity. — This Act shall take effect fifteen (15) 
days after its publication in two (2) national newspapers of general 
circulation. 
 
Approved,