Tie basil in cheesecloth; set aside. Combine sugar, vinegar, water, and food coloring in a flat-bottomed kettle, stirring well; add reserved basil. Bring to a rolling boil, stirring constantly; add liquid pectin, and return to a rolling boil. Boil 1 minute, stirring constantly. Remove from heat, and discard basil. Skim off foam with a metal spoon.
Quickly ladle jelly into hot sterilized jars, leaving 1/4-inch headspace. Cover at once with metal lids, and screw bands tight. Process jelly in boiling water bath 5 minutes. Serve with roast beef or pork.