DA extends sugar import ban to support local farmers

By Dolly Yasa

The Department of Agriculture (DA) and the Sugar Regulatory Administration (SRA) have extended the moratorium on sugar imports until the end of the current harvest season—and possibly through December 2025—to protect local farmers amid improved domestic production.

Agriculture Secretary Francisco “Kiko” Tiu Laurel Jr. announced the extension in a statement released by the SRA over the weekend, citing stronger raw sugar output as a key driver behind the decision.

The import ban, first imposed on October 15, may remain in place beyond the end of milling depending on stock levels, he said.

“I have instructed SRA Administrator Pablo Azcona to closely monitor local refinery production and submit regular updates so we maintain an accurate picture of both standard and premium refined sugar stocks,” Tiu Laurel said.

He emphasized that all refined sugar in the Philippines is produced from locally grown raw sugar, highlighting the importance of supporting domestic supply chains.

The DA and SRA are also finalizing long-awaited regulations governing molasses imports. Under the proposed framework, users will be required to exhaust domestic molasses supply before being allowed to import, subject to a predetermined ratio and SRA approval.

“This ensures that domestic supply is prioritized before any imports are considered,” Azcona said.

To further stabilize the sugar market and support farmer incomes, the government will implement a raw sugar buying program, with purchased volumes held as buffer stock for up to 90 days.

Tiu Laurel said the initiative follows months of industry consultations that failed to reach consensus, even as farmgate prices continued to fall.

“We can no longer afford to sacrifice our farmers,” he said.

“Our experience over the past two years shows that when a buying program is in place, prices recover. SRA has long been prepared, and we are now moving forward,” he added.

The program will operate similarly to the previous Sugar Order No. 2 (SO2) system, which linked export and import allocations to actual purchases of local sugar.

Tiu Laurel said that mechanism helped curb corruption, boosted transparency, and raised demand for Philippine-grown sugar.

“We implemented this system with Administrator Azcona precisely to remove corruption in allocations, and it resulted in higher prices for farmers,” he said.

Under the new plan, buyers will acquire up to 400,000 metric tons of raw sugar, which will be stored as reserve stock for 90 days.

This reserve will also serve as the basis for allocating a 100,000-metric-ton raw sugar export quota to the United States.

Azcona said the export plan reflects a surge in local output. “Because farmer output has grown significantly, we decided to export 100,000 tons of raw sugar to the US,” he said.

“To ensure transparency, allocations will again be processed through a buying program similar to SO2,” he added.

According to the DA and SRA, the combined measures are designed to stabilize market conditions, safeguard farmer incomes, and ensure fair and transparent access to sugar imports and exports.