The Department of Agriculture (DA) and the Sugar Regulatory Administration (SRA) have agreed to extend Molasses Order No. 1, which places a moratorium on molasses importation until the end of March next year.
Issued in September, the order suspended the entry of imported molasses until the end of this year to prevent farmer prices from falling further. A 21-percent increase in molasses production last milling season, coupled with additional imported supply, pushed prices down by almost half to below 10,000 per metric ton in early November.
In his recommendation to Agriculture Secretary Francisco Tiu-Laurel, SRA Administrator Pablo Luis Azcona said the Board found the extension necessary, noting that local stock levels remain at around 250,000 metric tons—considered ample for domestic use.
Azcona also reported that milling operations began on October 1 in Negros Island, with molasses production reaching nearly 84,000 metric tons as of November 9.
“Based on the recommendation of the SRA, and in the interest of our farmers and millers, Administrator Azcona and I have agreed to extend the moratorium on molasses imports until March 30, 2026—or further, depending on local stock levels,” Secretary Tiu-Laurel said.
Despite the moratorium, Azcona noted that stock levels remain high. “The extension will help relieve our millers’ tanks of local stock and, hopefully, support better molasses prices,” he said.
The SRA and the DA may amend the moratorium order as needed, depending on total molasses inventory.
It should be noted that only locally produced molasses is allowed to be used for bio-ethanol production, while, both local and imported molasses may be used for baking, confectionery, cooking, and beverages, as well as in the production of animal feeds, vinegar, citric acid, and potable and sanitary alcohol, among others.
