The Department of Agriculture (DA) and the Sugar Regulatory Administration (SRA) on Friday reaffirmed a moratorium on sugar imports to stabilize the market, protect farmers’ incomes, and ensure transparent, performance-based access to both imports and exports.
Agriculture Secretary Francisco “Kiko” Tiu Laurel Jr. said the policy, first announced on 15 October, could be extended through the end of milling or even December, until the end of harvest or further, citing stronger domestic raw sugar production and the need to prioritize locally produced sugar, depending on actual stock levels, following last year’s improved raw sugar output.
“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 stocks,” Tiu Laurel said.
“Refined sugar,” he noted, “is produced entirely from locally grown raw sugar.”
Molasses imports
The DA and SRA are also preparing a long-delayed regulatory framework governing molasses imports, a move Tiu Laurel said would further protect domestic producers.
Under the proposed rules, molasses users will be required to buy and withdraw local molasses first. Only after meeting those requirements — and based on a pre-determined ratio — will imports be allowed, subject to SRA approval. “This ensures local supply is prioritized before any imports are considered,” Azcona said.
Government buying program for raw sugar
To stabilize prices and support farmers, the agencies will also roll out a government buying program for raw sugar, with purchases held as buffer stock for up to 90 days.
Tiu Laurel said the decision followed months of consultations with industry leaders that failed to produce consensus, even as farmgate prices continued to fall.
“We can no longer afford to sacrifice our farmers,” Tiu Laurel said. “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 program mirrors the earlier SO2 mechanism, which linked export and import allocations to actual purchases of local sugar.
The system, Laurel said, removed discretion from allocations, reduced corruption risks, and boosted demand for domestic sugar — ultimately lifting farmer prices.
“We implemented this with Administrator Azcona two years ago precisely to eliminate corruption in allocations, and it resulted in higher prices for farmers,” Tiu Laurel said.
Raw sugar as reserve stock
Under the new plan, the SRA will purchase up to 400,000 metric tons of raw sugar to be held as reserve stock for 90 days.
This volume will underpin the allocation of a 100,000-metric-ton raw sugar export quota to the United States.