SRA imposes moratorium on molasses imports until end of 2025

The Sugar Regulatory Administration (SRA) has imposed a moratorium on molasses imports until the end of 2025.

This decision, enacted through Molasses Order No. 1 issued on September 30, aims to safeguard local producers and find a balance beneficial to both producers and users.

The moratorium follows a significant 28% increase in molasses imports last crop year, totaling 853,285 metric tons, while domestic production also rose by 20.5% to 1.176 million metric tons.

This surge in supply has resulted in substantial millsite stockpiles, with 303,961 metric tons recorded as of end-August.

Consequently, local molasses prices have seen a 30 percent decrease.

The SRA will no longer process clearances for imported molasses, though applications filed before the order or for molasses already in transit are exempted.

SRA Administrator Pablo Luis Azcona stated the agency will investigate the disparity between local production and the alcohol industry's requirements.

The moratorium may be extended or lifted depending on the stock balance.