• GILBERT P. BAYORAN
The Sugar Regulatory Administration (SRA) has banned the importation of sugarcane-derived products intended for bioethanol production, citing violations of the country’s biofuels policy and the need to protect local sugar farmers.
Under Sugar Order No. 4, dated May 18, which was released on June 25, the SRA prohibited the importation of molasses, sugar, sugarcane, sugar syrups, and other sugarcane-derived products for use as feedstock in the manufacture of bioethanol.
The order states that any approval for the importation of bioethanol feedstock must first be authorized by the National Biofuels Board.
Sugar Order No. 14, series of 2008-2009 earlier allowed for the importation of among others, molasses, sugar, sugarcane, sugar syrups, and other products derived from sugarcane and sugar for use as feedstock in the manufacture of bioethanol.
Section 16 of the Department of Energy (DOE) circular number DC-2007-05- 0006 cited in Sugar Order No. 14, series of 2008-2009, however, does not authorize the SRA to allow the importation of such as molasses, sugar, sugarcane for use in the manufacture of ethanol, the agency said.
According to the SRA, the continued importation of sugar-based feedstocks is inconsistent with the provisions of Republic Act No. 9367, or the Biofuels Act of 2006, which requires that all liquid fuels for motors and engines sold in the country contain locally sourced biofuels.
“What is allowed under RA 9367 and its implementing rules and regulations is the qualified importation of bioethanol itself and not the importation of feedstock for production,” the agency said.
Citing guidance from the DOE, the SRA explained that locally sourced biofuels must be derived from feedstocks that are grown, harvested, and processed within the Philippines.
Imported feedstocks have adversely affected local sugar producers by reducing demand and depressing prices of domestically produced molasses and sugar, it added. | GPB
