What the moratorium covers and key dates
The Sugar Regulatory Administration (SRA) announced a temporary halt on the importation of molasses until the end of 2025. This action comes after the Sugar Board issued Molasses Order No. 1 on September 30, directing the suspension while policy reviews are conducted to balance the interests of local producers and molasses users.
According to the order, molasses imports surged in the last crop year, rising by 28% to a total of 853,285 metric tons. The moratorium will expire by year-end 2025, but the SRA reserves the right to extend or lift the ban depending on the country’s stock balance and market conditions. As part of the measure, the agency said it will no longer process clearances for the release of imported molasses. Exceptions apply to applications filed before the order’s issuance or those already in transit when the order was promulgated.
Why the SRA moved to suspend imports
Several factors prompted the moratorium. The SRA highlighted a notable rise in domestic molasses production and a simultaneous build-up in stock. Domestic output climbed about 20.5% year-on-year to around 1.176 million metric tons, contributing to a molasses millsite stock balance of 303,961 metric tons as of August. In parallel, withdrawal of locally produced molasses from mills slowed, and the market saw a price decline: domestic molasses averaged roughly P12,000 per metric ton in the recent period, about 30% lower than the previous crop year’s P18,000.
Stakeholders who pressed for the moratorium cited a need to realign imports with current supply and demand, ensuring that local producers and users benefit from any policy changes. The goal, as articulated by the SRA, is to avoid flooding the market with imports when a robust domestic supply—useful to ethanol producers and other users—exists at favorable prices.
The policy rationale and potential implications for biofuels
Most domestic molasses production is used by ethanol producers, which ties directly into the country’s biofuel framework. The SRA underscored the importance of ensuring that ethanol feedstock remains locally sourced, aligning with the biofuel law that promotes a blend of locally produced ethanol in gasoline. SRA Administrator Pablo Luis Azcona noted the need to resolve a “discrepancy” between the volume of locally produced molasses used and the amount allocated to alcohol production, stressing greater transparency on feedstock sourcing among ethanol and alcohol producers.
Azcona said the agency would scrutinize why farmers’ molasses purchases remain unwithdrawn and unused, arguing that import is unnecessary if local supplies can meet demand. He stressed that the objective is to verify that ethanol producers source molasses locally first, before turning to imported supplies, and that alcohol producers should prioritize local molasses that meets quality standards.
What happens next and how stakeholders should prepare
The moratorium is a living policy tool. Its end date is not set in stone; it will depend on ongoing assessments of stock balances, domestic production, and consumption patterns. If stock levels rise or remain healthy and domestic molasses continues to meet most of the demand, the SRA may extend the moratorium or adjust its scope. Conversely, if shortages emerge or prices tighten in favor imports, the agency could lift or modify the ban accordingly.
Industry players—from sugar mills to ethanol facilities—should monitor updates from the SRA and align procurement plans with the regulator’s stated objective: to safeguard local producers while maintaining a reliable supply for users, particularly the biofuels sector that relies on molasses as a feedstock.
Official statements and quotes
SRA Administrator Pablo Luis Azcona explained that the move is intended to “balance that will be beneficial to local producers and users.” He emphasized the need to understand the sourcing dynamics for ethanol and alcohol production and cautioned against importing if the local supply can satisfy demand. He also called for closer scrutiny of the attention given to molasses withdrawals by farmers and the ultimate destination of locally produced molasses.
