The Philippine government has decided to extend a crucial policy protecting its domestic sugar industry, citing stronger local production and the need to shield farmers from falling prices.
Import Ban Extended, Buffer Stock Program Launched
The Department of Agriculture (DA) and the Sugar Regulatory Administration (SRA) have officially reaffirmed a moratorium on importing sugar until the current harvest season concludes. This policy, initially announced on October 15, 2025, may be prolonged through the milling period or even until December, depending on actual stock levels. Agriculture Secretary Francisco Tiu Laurel Jr. pointed to last year's improved raw sugar output as a key factor in this decision.
Secretary Laurel has directed SRA Administrator Pablo Azcona to keep a close watch on local refinery production. "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," Laurel stated. He emphasized that all refined sugar in the country is produced from Philippine-grown raw sugar.
New Rules for Molasses and a Major Buying Program
In a related move to bolster the sector, the agencies are finalizing a long-delayed regulatory framework for molasses imports. The proposed rules mandate that molasses users must first purchase and withdraw local supplies. Import permits will only be granted after fulfilling this local requirement and based on a pre-set ratio, all subject to SRA approval.
The centerpiece of the new measures is a government buying program for raw sugar, designed to stabilize farmgate prices. The government will purchase up to 400,000 metric tons of raw sugar to be held as a buffer stock for a maximum of 90 days. Laurel explained that this action follows months of inconclusive talks with industry leaders as prices kept dropping. "We can no longer afford to sacrifice our farmers. 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," he said.
Linking Buffer Stock to US Export Quotas
This new program revives the principles of the earlier SO2 mechanism, which tied export and import allocations to actual purchases of domestic sugar. Laurel credited that system with removing discretion from the allocation process, cutting corruption risks, and boosting demand for local sugar, which ultimately raised 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," he noted.
The volume of the buffer stock will directly support the allocation of a 100,000-metric-ton raw sugar export quota to the United States. SRA Administrator Azcona linked this export decision directly to the growth in local production. "Because farmer output has grown substantially, we decided to export 100,000 tons of raw sugar to the US," Azcona said. He added that to ensure transparency, the allocations for this export quota will again be managed through a buying program similar to the SO2 model.
Azcona also stressed that the moratorium ensures local supply is fully prioritized before any import considerations are made. The DA and SRA stated that these combined actions aim to achieve three core goals: stabilize the sugar market, protect farmers' incomes, and ensure transparent, performance-based access to both import and export opportunities.
