PH halts molasses imports until 2026

The Philippines will extend the temporary ban on molasses importation until March next year as the government races to halt the sharp decline in millsite prices, the Sugar Regulatory Administration (SRA) said.

- By DEXTER BARRO II

SRA said it will extend the period of moratorium embodied under Molasses Order (MO) No. 1, which was issued on Sept. 30 and took effect on Oct. 3.

Under this order, the country suspended the entry of imported molasses until the end of the year to prevent millsite prices from falling.

The sugar agency noted that the average millsite price of domestic molasses is 30-percent lower than last year's average of P18,000 per metric ton (MT), down to P12,000 per MT as of Aug. 24.

The decline is attributed to reduced withdrawals of local molasses following a spike in imports, which stood at 853,285 MT as of Aug. 31. This figure is 28-percent higher than the average annual imports in the three previous crop years.

The influx of imports took place even as the country recorded strong domestic output, growing 21 percent to 1.18 million MT in the first eight months compared to last year's total production of 975,934 MT.