Philippines : Moratorium on sugar imports extended
BACOLOD City — The Department of Agriculture (DA) and the Sugar Regulatory Administration (SRA) have reaffirmed a moratorium on sugar imports until the end of the current harvest season, or possibly beyond, citing stronger domestic raw sugar production and the need to prioritize locally produced supply.
In a statement released recently, the SRA said Agriculture Secretary Francisco Tiu Laurel Jr. noted that the import ban, first announced on October 15, may be extended until the end of milling or even through December, depending on actual stock levels and production data. The decision follows improved raw sugar output recorded last year.
“I have instructed SRA Administrator Pablo Azcona to closely monitor local sugar refinery production and provide regular updates so we maintain an accurate picture of our standard and premium-grade refined sugar stocks,” Tiu Laurel said, noting that refined sugar in the country is produced entirely from locally grown raw sugar.
The DA and SRA are also finalizing a long-delayed regulatory framework governing molasses imports, aimed at strengthening protection for domestic producers. Under the proposed rules, users of molasses will be required to first purchase and withdraw locally available supply before being allowed to import.
“Only after meeting those requirements, and based on a predetermined ratio, will imports be allowed, subject to SRA approval,” Azcona said. “This ensures local supply is prioritized before any imports are considered.”
To help stabilize prices and support farmers amid declining farmgate prices, the DA and SRA will also implement a government buying program for raw sugar. Purchased volumes will be held as buffer stock for up to 90 days, he added.
Tiu Laurel said the move comes after months of consultations with industry stakeholders failed to reach consensus, even as prices continued to fall.
“We can no longer afford to sacrifice our farmers. We’ve seen over the past two years that when a buying program is implemented, prices recover. SRA has long been ready, so we are moving forward,” the DA secretary said.
The program will mirror the earlier Sugar Order No. 2 (SO2) mechanism, which linked export and import allocations to the actual purchase of locally produced sugar. According to Tiu Laurel, the system reduced discretion in allocations, minimized corruption risks, and increased demand for domestic sugar — ultimately leading to higher prices for farmers.
“We implemented this with Administrator Azcona two years ago precisely to eliminate corruption in allocations, and it resulted in higher prices for farmers,” he added.
Under the new plan, buyers will purchase up to 400,000 metric tons of raw sugar to be held as reserve stock for 90 days. This volume will serve as the basis for allocating a 100,000-metric-ton raw sugar export quota to the United States.
Azcona said the export decision reflects a significant increase in raw sugar production.
“Because farmer output has grown substantially, we decided to export 100,000 tons of raw sugar to the US,” he said, adding that, to ensure transparency, allocations will again go through a buying program similar to SO2.
The DA and SRA said the combined measures are intended to stabilize the sugar market, protect farmers’ incomes, and ensure transparent, performance-based access to both import and export opportunities.
To Read more about Sugar Industry continue reading Agriinsite.com
Source : Panay News
