PHL raw sugar exports to US could fall by 46 percent — USDA

Philippine raw sugar export is projected to drop by 46 percent to 295,000 metric tons (MT) for crop year 2012-2013 due to lower beginning stocks, according to a recent report by the United States Department of Agriculture (USDA). "Due to significantly lower beginning stocks, [Manila] forecasts total raw sugar exports for crop year 2012-2013 at 295,000 MT, down from crop year 2011-2012 when ample beginning stocks and strong demand resulted in unusually strong exports of 545,000 MT," said the report issued by the agency’s Global Agricultural Information Network (GAIN). The USDA maintains the Philippines’ annual sugar export quota at 144,901 MT and could even increase it. The US imports raw sugar at a premium from the Philippines under the Tariff Rate Quota (TRQ) program, in which the Philippines is one of the preferred countries. GAIN also reports that domestic demand for sugar is expected to grow next year. "Traditionally in the Philippines, there is perceptible uptick in demand for food items that occurs in line with national campaigns and elections," the report read. According to official figures, the Philippines’ raw sugar output for crop year 2012-2013 could rise 5 percent on year to 2.356 million metric tons (MT) from 2.243 million MT in crop year ending August 31, 2012. Crop year 2011-2012 also ended with an estimated ending balance of 30,144 MT for “A” (US quota) sugar, 143,661 MT for “B” (domestic) sugar and 58,793 MT for “D” (world market) sugar. — BM, GMA News