Philippines to resume exporting raw sugar to US in August — SRA
The Philippines will resume raw sugar exports to the US in August, nearly four years after its last shipment. The Sugar Regulatory Administration (SRA) approved the export of 25,000 metric tons, following requests from industry stakeholders. The US allocated an additional 25,300 metric tons raw value for the Philippines for fiscal year 2024. The Philippines will export raw sugar while importing refined sugar to fill an anticipated supply gap and ensure price stability. The SRA aims to stabilize local prices and avoid losing the US quota.
The Philippines will be resuming its exports of raw sugar to the United States in August, nearly four years after it made its last shipment to America, following requests from industry stakeholders.
Interviewed by reporters on Thursday, Sugar Regulatory Administration (SRA) administrator and CEO Pablo Luis Azcona said, “Exporters are requesting if they’ll be allowed to export.”
“Exporters are volunteering to export… they will serve the 25,000 [metric tons],” Azcona said.
In March, the US Trade Representative (USTR) announced it allocated an additional 25,300 metric tons raw value (MTRV) for the Philippines for fiscal year 2024 (October 1, 2023 through September 30, 2024).
The US government’s MTRV allocation scheme allows countries to export specified quantities of a product at a “relatively low tariff.”
“According to exporters, they [raw sugar] have to arrive in the US by September… So, if that happens, [the exportation] will happen in August,” Azcona said.
The plan to export will be implemented through a sugar order, which will be decided this month.
The Philippines’ last shipment to the US was in the crop year 2020–2021, when it shipped 112,008 MT of commercial raw sugar.
The Philippines is also planning to import around 200,000 MT of refined sugar later this year to fill an anticipated supply gap and ensure the price stability of the commodity.
Azcona said that the Philippines would be exporting raw sugar while importing refined or processed sugar.
The SRA chief said that the “trigger point” for the planned importation will be seen in August, as current stocks are anticipated to go down to three months’ worth of demand.
‘Why export and then import?’
In a statement, the Sugar Council—a coalition of sugarcane producers—expressed concern about “why there is a need to import even as an export sugar order is being prepared.”
“Farmers have reason to be puzzled. Why export and then import? Why export 24,700 MT of raw, which we are short of, and replace it with 61,750 MT of refined (at a 1:2.5 ratio), of which we have too much? ” the Sugar Council asked.
The sugarcane producers coalition said the DA and the SRA should explain the situation to the common farmer, whom it described as “understandably worried” about mill gate prices when sugarcane harvest begins later this year.
Azcona said that “we do not want to lose the US quota if we don’t serve it for a long period of time.”
“We really need it sometimes to stabilize our local prices,” the SRA chief said.
On top of the additional 25,300 MTRV, the US allocated 145,235 MTRV for the Philippines this year.
Azcona reiterated that the importation should happen before the start of the milling season in September, “so it will not affect the prices of our locally produced sugar.” — VBL, GMA Integrated News
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