There is no need to allow more molasses imports despite calls from local bioethanol producers, according to the Philippine Sugar Millers Association, Inc. (PSMA).
“There is no reason to import molasses for bioethanol. Local molasses production is on the upswing and our demand has been soft and slow. Molasses inventories are building up that there has been an overflow in molasses tanks in some mills in recent months,” said Jesus Barrera, PSMA executive director.
Citing data from the Sugar Regulatory Administration, PSMA said that as of January 29, 2023, local molasses production total 471,046.18 metric tons (MT) versus demand of only 349,509 MT.
With production in high gear but low demand, the national inventory of molasses hit 262,893 MT and increasing the past many months.
“SRA records show that our total molasses balance mill site was 162,987 MT in end-October 2022 and 185,360 MT in end-November 2022. By January 29, 2023 it had grown to 262,893 MT or 8.08 percent higher than that of the same period last year. We have sufficient supply. There is no national emergency or shortage of molasses. We do not need to import more molasses specifically for bioethanol production,” Barrera reiterated.
PSMA is flabbergasted that despite the excess local supply, the Philippines still imported 608,310 MT of molasses in 2022 ostensibly for potable alcohol and animal feed production, up by 80 percent from over 337,000 MT in 2021.
Barrera said that in January 2023 alone, molasses imports were up 80 percent to 88,702 MT, from 49,145 MT in January 2022.
According to data from the Department of Energy, there are only 13 accredited bioethanol producers in the country with a total capacity of 220 million liters per year.
Two other producers were accredited as bioethanol manufacturers, with total annual capacity of 83 million liters.
