The Sugar Regulatory Administration (SRA) has issued an order requiring buyers to first purchase locally produced molasses before they are allowed to import supplies.
Under Molasses Order No. 2, signed on January 5, 2026 and released publicly this week, only stakeholders who buy local molasses may import. The SRA said the policy aims to prioritize local producers while ensuring enough supply in the market.
Eligible buyers include individual farmers, cooperatives, associations, sugar millers and refiners, manufacturers, beverage makers, and molasses traders, as long as they are licensed and in good standing for the current crop year.
The order allows imports at a ratio of three units of local molasses purchased for every one unit of imported molasses. Violations of the order may result in sanctions.
SRA administrator Pablo Azcona said this is the first government order regulating molasses imports. He said the Philippines normally produces 1 to 1.1 million metric tons (MT) of molasses annually and imports about 700,000 MT.
Under the new rule, imports could be limited to about 350,000 MT, subject to monitoring of stock levels.
Azcona added that importers must present certificates and release orders showing they have withdrawn and used local molasses, which also helps ease storage problems at sugar mills.
Last November, the Department of Agriculture and the SRA extended the moratorium on molasses imports until the end of March 2026, citing local stocks of about 250,000 MT, which officials said were sufficient for domestic needs.
Molasses, a byproduct of sugar refining, is mainly used for alcohol and ethanol production. The SRA reiterated that only locally produced molasses may be used for biofuel production, while both local and imported molasses are allowed for food products, beverages, animal feed, and other industrial uses.
As of December 14, the average price of molasses stood at P7,088.33 per MT, slightly lower than the previous week, based on SRA monitoring.
