Philippines to export 66,000 MT raw sugar to meet US quota allocation
The Philippines plans to export 66,000 metric tons of raw sugar to the US before April to meet its quota. The Sugar Regulatory Administration (SRA) will ship two boatloads of 33,000 MT each. While some producers oppose the lower US prices, the SRA ensures exports use domestically priced sugar. Traders can import 2.5 kg of refined sugar per kg exported.
The Philippines is eyeing to export 66,000 metric tons (MT) of raw sugar before April to fulfill its United States sugar quota allocation, according to the country’s sugar industry regulator
The Sugar Regulatory Administration (SRA) has decided to ship two boatloads, each containing 33,000 MT, to reduce freight costs, replacing the initial plan to send 60,000 MT. This decision was made following discussions with traders, as explained by SRA Administrator Pablo Luis S. Azcona during a briefing, reported Business World.
Azcona noted that some sectors of the industry, including producers, oppose sugar exports to the US because the commodity is bought at a lower price there. “Sugar is bought by traders at US prices, which are about P1,000 less than the domestic price. That’s why farmers have raised complaints,” Azcona said.
To address these concerns, the SRA’s Sugar Order No. 2 will prioritize traders who purchase raw sugar from producers at domestic prices for future government import programs.
The SRA has compiled a list of traders who will be involved in the 66,000-MT export program, which will be formalized in the upcoming Sugar Order No. 3.
Azcona added that producers have expressed that while the SRA and government can proceed with the export plan, they do not want to bear the burden of subsidizing the exports. He emphasized that all exports would consist of sugar originally purchased from producers at the domestic price.
Azcona also mentioned that the Department of Agriculture will likely oversee the export program in relation to the US quota for 2025. The Philippines holds the third-largest US quota for raw sugar, a position it aims to maintain.
For every kilogram of raw sugar exported, traders will be allowed to import 2.5 kilograms of refined sugar. The export of 66,000 MT of raw sugar is expected to be accompanied by plans to import 165,000 MT of refined sugar.
Azcona clarified, “The exporters will export at a loss and recover it through imports.”
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Source : Chinimandi
