The Sugar Regulatory Administration (SRA) has temporarily suspended molasses importation, citing the need to support local producers and address declining domestic prices and unutilized local stocks.
The moratorium, issued 30 September, comes as the agency and sugar stakeholders anticipate an 8.1 percent decline in sugar production for crop year 2025-2026, from 2.09 million metric tons (MT) to 1.92 million MT. The shortfall is largely attributed to the red-striped soft scale insect (RSSI) infestation, particularly affecting Negros Island, which produces around 65 percent of the country’s sugar.
SRA administrator Pablo Luis Azcona stressed the importance of ensuring that ethanol and alcohol producers prioritize local molasses, which remains underutilized despite a 20.5 percent increase in domestic production in the previous crop year, reaching 1.176 million MT. This disconnect comes as importation surged by 28 percent, totaling 853,285 MT, leading to an oversupply and a price drop of around 30 percent—from ₱18,000 to ₱12,000 per MT.
Azcona called for transparency from ethanol and alcohol producers on their sourcing practices, underscoring that local molasses, which is higher in quality, should be consumed before turning to imports. “We need to see why molasses bought from farmers remains unused. Hence, there is no need to import,” he said.
As of August 2025, molasses millsite stocks stood at 303,961 MT. While the ban excludes shipments already in transit or previously approved applications, no new import clearances will be processed until at least the end of 2025. The moratorium may be extended depending on stock assessments.
Meanwhile, sugar industry leaders have echoed the SRA’s production forecast and backed the import freeze, urging any future sugar importation be “judiciously managed” to prevent undercutting local farmers.
Retail prices for sugar remain stable as of end-September, with refined sugar at ₱80/kg, washed sugar at ₱75/kg, and brown sugar at ₱70/kg, according to the Department of Agriculture.
The SRA said it is formulating a performance-based policy to govern future molasses import allocations to ensure fairness and sustainability in the sector.
