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Apr 15, 2016 @ 8:17

Ginebra San Miguel blames tight molasses supply on Biofuels Act

The decline in sugarcane harvests and the implementation of the Biofuel Act of 2006 has resulted in a tight supply of molasses in the market with the liquor industry resorting to the importation of beverage alcohol, Ginebra San Miguel said.

In its annual report, Ginebra San Miguel said “the country’s molasses supply for beverage alcohol is currently decreasing” and that it has resulted in the “importation of beverage alcohol” to replace the alcohol derived from molasses.

Ginebra San Miguel said the importation “eases pressure on hard liquor manufacturers since imported beverage alcohol is readily available from sources outside of the country.”

With the preferential tariff scheme within the Association of South East Asian Nations, imports and exports within the ASEAN are exempted from paying tariff or custom duties.

The Bureau of Agricultural Statistics said sugarcane production for all uses, except for ethanol, went down by 7.7 percent in the last quarter of 2015.

The BAS said sugarcane production for ethanol increased by 17 percent with the increase in harvested area from leasehold contracts and individual farmers in the provinces of Isabela and Cagayan. Ethanol is used as an additive to gasoline. (By: Eileen A. Mencias)



 

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