The government is finalizing plans to extend the ban on sugar imports after authorizing the purchase of 400,000 metric tons (MT) of sugar from local planters under a voluntary buying program, reports Business Mirror.
The Department of Agriculture (DA) and the Sugar Regulatory Administration (SRA) said importation will only be allowed after the harvest season ends, or possibly later, citing improved domestic raw sugar production.
Agriculture Secretary Francisco Tiu Laurel Jr. said the import ban, first announced on October 15, could be extended until the end of the milling season or even through December, depending on actual sugar stock levels.
“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.
He emphasized that refined sugar in the country is produced entirely from locally grown raw sugar.
The DA and SRA are also preparing a long-delayed regulatory framework for molasses imports aimed at further protecting domestic producers. Under the proposed rules, molasses users will be required to purchase and withdraw locally produced molasses first.
Only after meeting these requirements, and based on a predetermined ratio, will imports be allowed, subject to SRA approval.
“This ensures local supply is prioritized before any imports are considered,” Azcona said.
To help stabilize prices and support farmers, the SRA will also implement a raw sugar buying program, with purchased sugar held as buffer stock for up to 90 days.
Tiu Laurel said the decision followed months of consultations with industry stakeholders that failed to reach consensus, even as farmgate prices continued to decline.
“We can no longer afford to sacrifice our farmers,” he 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 initiative will be issued as Sugar Order (SO) 2 for the current crop year. The program links import and export allocations to actual purchases of locally produced sugar.
According to the DA chief, the system removes discretion from allocation decisions, reduces corruption risks, and increases demand for domestic sugar, resulting in 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,” Tiu Laurel said.
Under the new plan, qualified buyers will purchase up to 400,000 MT of raw sugar to be held as reserve stock for 90 days. The DA said this volume will support the allocation of a 100,000 MT raw sugar export quota to the United States.
Azcona said the export allocation reflects a significant increase in local raw sugar production.
“Because farmer output has grown substantially, we decided to export 100,000 tons of raw sugar to the US,” he said. “And to ensure transparency, allocations will again go through a buying program similar to SO2.”
The DA and SRA said the combined measures are expected to stabilize the sugar market, protect farmers’ incomes, and ensure transparent, performance-based access to sugar imports and exports.
