The Department of Agriculture (DA) and the Sugar Regulatory Administration (SRA) have reaffirmed a moratorium on sugar imports until the end of harvest or further, citing stronger domestic raw sugar production and the need to prioritize locally produced sugar.
Agriculture Secretary Francisco “Kiko” Tiu Laurel Jr. said in a press release on Friday, Dec.19, that the policy, first announced on October 15, could be extended through the end of milling or even December, 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.
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.
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.
Under the new plan, the buyers 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.
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. “And to ensure transparency, allocations will again go through a buying program similar to SO2.”
The DA and SRA say the combined measures are aimed at stabilizing the market, protecting farmers’ incomes, and ensuring transparent, performance-based access to both imports and exports.*