PHL to fill sugar export targets – govt

Despite an initial report of a slowdown in sugar production for the crop-year 2011-2012, the Philippine government remains optimistic that sugar exports to foreign destinations will reach its target volume.   “Actually, our only export obligation is the US quota. We can adjust anytime the allocation of exports to the world if projected production declines,” said Sugar Regulatory Administration (SRA) manager for planning Rosemarie Gumera on Monday.   A total of 600,000 metric tons of raw sugar for export has been allocated by SRA for crop year 2011-2012 that started in September. This volume includes the 224,549 metric ton raw value (MTRV) allocation for the US sugar quota program.   The Philippines exports raw sugar to the US under the Tariff Rate Quota Scheme, which imposes a relatively low tariff on specified quantities of a product.   Philippine sugar exporters have exported 261,706 metric tons of raw sugar to the world market (US, Vietnam, Korea, Indonesia, China, Japan and Taiwan) as of Nov. 28, 2011. Of this amount, 93,164 metric tons went to the US.   SRA expects the ending stocks of raw sugar to be less than 400,000 metric tons by Aug. 31, 2012 after the export allocation has been met by exporting companies All Asia, Central Azucarera  Bais, Central Azucarera Don Pedro, Central Azucarera San Antonio, Crystal Sugar, Delmax, Ed and F Man, Masagana, Northen Negros Mill, Sucden Phils, Oro Allado, and URC-Sonedco.   According to SRA Administrator Regina Martin, international traders have inquired about the possibility of having a sustained export program from the Philippines.   “With increasing demand from developing countries, especially with the growing middle-class in most cities, the prospects for increasing sugar demand in the next five years should be an incentive to the Philippines to continue production at a modest surplus,” she said.   Slowdown in production, higher prices   SRA disclosed it will verify this holiday season field reports about a slowdown in sugarcane production.    It previously estimated an output of 2.4 million metric tons of raw sugar. This number may be brought down to 2.2 million metric tons.   SRA also noted the increase in sugar prices over the past two weeks owing to the Christmas season.   It said sugar prices will continue to appreciate by the end of December, when the 232,000 metric ton-shipment to the world market has been completed. – KG/VS, GMA News