SRA launches molasses purchase program

The Sugar Regulatory Administration (SRA) has initiated a voluntary molasses purchase program.

This is a measure, introduced for the first time, to regulate molasses imports and protect the local industry.

The SRA said the program aims to prioritize the sale and use of local molasses while maintaining a sufficient supply level.

Via Molasses Order No. 2, eligible participants can buy locally produced molasses in exchange for an import allocation in the future.

Molasses users should buy and withdraw molasses from local mills before availing the privilege to import molasses in the future.

SRA Administrator Pablo Luis Azcona said that unlike in previous voluntary sugar purchase programs, participants can buy as much molasses as they want through this initiative.

But the SRA chief noted that about 350,000 metric tons of molasses will be allowed under this initiative.

“We will, however, monitor stock levels and add if necessary, but all based on their purchase and withdrawal of local molasses,” Azcona said in a Viber message on Wednesday.

Interested entities need to submit a molasses storage certificate or molasses certificate, as well as a withdrawn molasses release order to prove their purchase and usage of locally produced molasses.

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“It also solves the perennial storage problems at millsite,” added Azcona.

Buyers must also submit a duly notarized undertaking confirming compliance with the order, ownership of the certificate or release order, and the applied volume under this issuance will be withdrawn from the sugar mill or tank within 30 days from the SRA’s receipt of the application.

This is open to farmers, farmer’s groups, farmer’s cooperative, farmer’s association, sugar millers/refiners, manufacturers, beverage makers and molasses traders.

Those participating must be licensed traders in good standing for the relevant crop year and have no pending cases with the SRA. They must have paid the relevant fees, submitted the reportorial requirements and are legally allowed to engage in molasses trading.