8% of Philippine sugar output for export to meet US quota


THE Philippines has apportioned the larger bulk of this crop year’s sugar output to the domestic market, while the rest are for export to meet its commitment to the United States, the Sugar Regulatory Administration (SRA) said on Monday.

According to a copy of Sugar Order No.1 sent to reporters Monday, the SRA board said sugar production for crop year 2016 to 2017 is expected to reach 2.25 million metric tons (MT), higher than the 2.24 million MT produced in the previous crop year.

For crop year 2015 to 2016, the country produced 2.24 million MT of sugar, slightly exceeding its production target for that crop year amid the severest El Niño-induced dry spell to hit the country in decades.

A sugar crop year in the Philippines runs from September to August.

The SRA initially set the target for sugar output for the last crop year at 2.25 million to 2.35 million MT, roughly the same level as the preceding year’s, but that was lowered to 2.15 million to 2.19 million MT as El Niño intensified early this year.

Production target for this crop year is also expected to cover domestic requirement of “more or less” 2.15 million MT with the allocation of 2.07 million MT, or 92% of total targeted output.

The SRA board added that it will continue to conduct “periodic assessment of production and withdrawal trend” for future adjustments of allocation and distribution of different classes of the sweetener.

The country consumes nearly 200,000 MT of sugar on a monthly basis bringing the county’s average demand for sugar at 2.2 million MT to 2.44 million MT.

Rosemarie S. Gumera, SRA’s policy and planning manager, said in a phone interview that Manila is prepared to meet exports commitment to Washington, “with an allocated allowance in case the US calls for an increase in its quota requirement.”

Of the total 2.25 million MT production slated for this crop year, the remaining 8% or 180,000 MT will go to Washington.

For this crop year, Manila has a regular US sugar quota of 138,827 MT in regular form or 142, 160 MT in raw value. The volume may increase depending on Washington’s assessment of the stability of its stocks.

The Philippines is one of the few countries given an annual allocation of sugar export to the US market under the tariff-rate quota scheme.

“The US market continues to be a reliable market and remains an instrument to stabilize sugar supply that its allocation is imperative regardless of volume,” the sugar order read.


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