The Sugar Regulatory Administration (SRA) has banned the importation of sugar, molasses, and other products derived from sugarcane for use as feedstock in bioethanol production, as it seeks to end years-long noncompliance with the country’s biofuels policy.

Under Sugar Order (SO) No. 4 dated May 18 but made public last Monday, June 22, SRA said it will no longer allow the importation of sugar products into the country for bioethanol production.

Bioethanol, which primarily uses molasses as its main feedstock, is blended with gasoline to produce biofuel.

SRA said allowing the entry of sugar products from abroad for bioethanol production runs contrary to the policy set forth under Republic Act (RA) No. 9367, or the Biofuels Act.

“The adverse effect thereof on the demand and price of locally produced molasses and sugar is detrimental to the welfare of the Filipino sugar farmers and the entire sugar industry,” SRA said.

SRA initially allowed the importation of sugar and other related products as feedstock under Section 6 of SO 14, series of 2008-2009.

In its latest order, SRA pointed out that the Biofuels Act prohibits the importation of sugar for feedstock use, noting that the law mandates that biofuels contain locally sourced bioethanol.

Citing the Department of Energy (DOE), SRA said that “locally sourced” is defined as bioethanol derived from feedstocks grown, planted, harvested, and processed in the Philippines.

“There is thus an immediate need to amend Section 6 of SO 14, which allows the importation of, among others, molasses and sugar/sugarcane for use as feedstock in the production of bioethanol,” SO 4 read.

Based on the amendment, the importation of sugar for feedstock use is prohibited unless authorized by the National Biofuels Board (NBB), which is chaired by the DOE Secretary.

NBB, of which SRA is a member, oversees the domestic supply of biofuels and recommends adjustments to the mandatory blending requirements.

At present, the country’s biodiesel blend level remains at three percent, or B3. NBB earlier recommended suspending increases to higher blend levels amid rising coconut prices, as coconut is another feedstock used for biodiesel.

For molasses, SRA data showed that the country produced 1.04 million metric tons (MT) of the commodity in crop year 2025-2026, down five percent from 1.09 million MT in crop year 2024-2025.

Millsite prices of molasses as of May 31 increased by nearly 12 percent to ₱13,288.89 per MT from ₱11,900.20 per MT a year ago.