Officials in Santo Domingo have announced that Dominican Republic President Luis Abinader has officially promulgated Decree No. 719-26, a new regulatory framework that will govern the country’s 2026-2027 national sugar harvest. The sweeping new rules are designed to shore up stability in the Dominican sugar sector, with three core stated goals: guaranteeing a consistent supply of sugar for domestic consumers, honoring all pre-negotiated international export obligations, and expanding state oversight across every stage of the country’s sugar production and trade ecosystem.
Under the terms of the new decree, available sugar from the upcoming harvest and surplus stock carried over from the 2025-2026 production cycle must be allocated to two priorities in sequential order. First, the government mandates that all domestic consumer demand must be met before any sugar is allocated for export. Second, after securing domestic supply, producers must fulfill existing export commitments to preferential trade markets, chief among them the United States. Should a shortfall emerge that requires sugar imports to cover domestic demand or meet export obligations, the Dominican Sugar Institute (known locally as Inazucar) has been granted exclusive authority to issue all import licenses for the sector.
The new regulations also impose strict controls on all outbound shipments of sugar and related products. No sugar, molasses, or any by-products derived from sugar production may leave the country without formal export authorization from Inazucar. For producers seeking access to the U.S. market under the agreed preferential quota system, Quota Eligibility Certificates (QECs) will only be issued to officially registered and authorized sugar mills and producers. Third-party brokers and unapproved producers are explicitly barred from receiving these certificates, closing a loophole that had allowed unauthorized actors to access the U.S. quota in past harvest cycles.
Additional requirements mandate that all operating sugar mills must align their production schedules with government-approved production programs. Mills are again required to formalize their commitment to prioritizing the local market while upholding all international trade agreements. Producing companies are also required to submit full documentation of all international sales, including formal export contracts, detailed reports on shipment volumes, and product quality certifications, all within strict government-set deadlines.
To maintain ongoing transparency and regulatory compliance, the decree adds a monthly reporting obligation for all mills. Producers must update Inazucar every 30 days on changes to their production estimates and their progress toward meeting their assigned export quota obligations. Any producer that fails to report an anticipated production shortfall within the required timeframe will face penalties, including a proportional reduction in their export quota allocation for the subsequent harvest cycle.
Industry analysts note that the new framework represents a significant shift in how the Dominican government manages its sugar sector, one of the country’s most historic and economically important agricultural export industries. By formalizing priority allocation and tightening regulatory controls, policymakers aim to reduce trade disruptions, protect domestic consumers from price volatility, and preserve the Dominican Republic’s access to the lucrative U.S. sugar market.