Government Intervention and the Competitiveness of the Sugar Industry in the Philippines

Abstract

The sugar industry is vital in maintaining the Philippines' economy as it provides jobs, adds to its agricultural output, and supports local consumption and exports. But the sector is also grappling with a host of issues, such as volatile global prices, climate change impacts, and an influx of imported sugar. In response to these challenges, the Philippine government has historically employed a range of interventions to govern the sugar sector, including setting price ceilings, providing subsidies, imposing importation limits, and offering infrastructure support. Although these regulations seek to stabilize the market and protect local sugar farmers and guarantee customers a reliable supply of sugar, they also pose serious questions about the industry's competitiveness. This research highlights the importance of striking a balance between the government's need to assist RUNNING HEAD: Government Intervention and the Competitiveness of the Sugar Industry in the Philippines and the need for a competitive and sustainable sugar industry in the Philippines. It reviews the impact of regulatory measures on domestic producers, market efficiencies, and global competitiveness highlighting the pros and cons of government intervention in the sugar industry. The study aims to offer recommendations for enhancing the global competitiveness of the sugar industry in the Philippines while safeguarding the interests of producers and consumers in the local market.

Keywords: agriculture, cheap imported product, climate change, farmers, farming technology, fluctuating worldwide prices, food, government interventions, import restriction, infrastructure, protectionism, sugar, sugar prices, Sugar Regulatory Administration, SRA, price control, subsidies, trade liberalization