THE Sugar Regulatory Administration (SRA) has implemented Molasses Order (MO) 2, which prioritizes the purchase of locally-produced molasses as a prerequisite for availing of imports.
A byproduct of sugar production, molasses is a primary, cost-effective raw material for the commercial production of bioethanol — a renewable alcohol fuel for transportation, electricity, and feedstock in chemical industries.
The order seeks to address the buying price of local molasses, which had fallen due to a surplus in local stocks and previous imports.
The SRA had previously cited a 21-percent increase in local molasses production in the last milling season and a 28-percent rise in average annual molasses imports in the previous years.
Local molasses prices dropped to P12,000 per metric ton (MT) in October and P10,000/MT in November 2025 from the previous P18,000/MT.
The SRA had observed that while bioethanol producers are mandated to use only locally-produced molasses for their feedstock, its purchase volume and prices remain low.
Purchase rules are at a 3:1 ratio — or three units of local molasses to one unit of imported molasses. However, the SRA said it may allow additional importation if necessary.
The “buy local molasses before buying imports” program is open to farmers, farmers’ groups, cooperatives and associations; sugar millers or refiners; manufacturers; beverage makers; and domestic and international molasses traders licensed by the SRA, in good standing for the relevant crop year, and have no pending case with the agency.
The program entails updated and paid registration or license fees, reportorial requirements, and permission to engage in molasses trading activities under the law.
Interested parties may submit their molasses storage certificate or molasses certificate and withdrawn molasses release order to the SRA Regulation Department in Quezon City or Bacolod City.
They should also provide a notarized undertaking vowing to comply with the terms and conditions of the molasses-buying program, including the condition that purchased local molasses should be withdrawn from the sugar mill or tank within 30 days from the date of the application.
The notarized undertaking should also include the president, chief executive officer, chief operating officer, partner, or owner stating they are the rightful owner of the certificates submitted with the application.
The purchased molasses will be monitored through a weekly SMS report to be verified by the SRA Regulations Officer assigned at sugar mills.
Non-compliance with storage requirements would result in fines and/or sanctions, such as forfeiture or cancellation of the privilege to import, as well as other measures in the SRA Book of Penalties and existing laws, rules, regulations and issuances from the government.
A reasonable supply and fair price of locally-produced molasses contribute to the welfare of the sugar industry, the SRA said.
The order for the molasses-buying program was signed by Agriculture Secretary Francisco Tiu Laurel Jr.
The SRA is an attached agency of the Department of Agriculture.
