Raw sugar exports to US seen shipping out by Aug.
THE Sugar Regulatory Administration (SRA) said it plans to allow exporters to start deliveries of raw sugar by August to meet the US quota.
SRA Administrator Pablo Luis S. Azcona quoted the sugar industry as saying that increased production will allow it to meet the US quota of 25,000 metric tons (MT).
According to the SRA, raw sugar production was 1.92 million metric tons (MMT) as of May 12, exceeding the 1.799 MMT brought in a year earlier.
“Sugar exports need to arrive (in the US) by September… they should start shipping out by August,” he said in a briefing on Thursday.
Mr. Azcona added that the SRA had sent out a draft sugar order (SO) to the industry for comment.
“After that, the board will deliberate on all the comments and suggestions, and we will come up with an SO for it,” he said.
The US grants the Philippines an export quota of 25,300 metric tons raw value of raw sugar at a favorable tariff. The Philippines has until Sept. 30 to fill the quota.
Exports of raw sugar to the US are optimized to stabilize prices during times of overproduction.
“This year, we didn’t do it in January-February because the US quota was issued in April. For now, so that we will not be a default of our commitment to them, we will export,” Mr. Azcona added.
During crop year 2023-2024, all raw sugar was classified “B” sugar or for domestic consumption, according to SO No. 1.
The Philippines last shipped raw sugar to the US during the 2020-2021 crop year, amounting to 112,008 MT of commercial weight raw sugar. The country has not exported sugar to the US since then due to domestic supply concerns.
The SRA has said that exporters have prequalified for the planned export program after participating in the voluntary purchase program authorized by SO No. 2.
The order called for the voluntary purchase of domestically produced sugar in order to stabilize farmgate prices. Participants were also eligible for an allocation in a future import program.
He said that about 20 exporters have volunteered to meet the US export quota, but cited the need for a replenishment program through imports.
The SRA’s replenishment program allows exporters of raw sugar to the US to import refined sugar in approved volumes.
Last month, the Department of Agriculture said it was planning to allow imports of about 200,000 MT of refined sugar to plug a possible supply gap before the start of the milling season on Sept. 15. — Adrian H. Halili