PHL to lower sugar export to US as commodity from Mexico weighs, SRA reports

An oversupply of sugar in the United States may compel the Philippines to reduce the volume of exports to the US during the current crop year ending in September, the Sugar Regulatory Administration (SRA) said Friday.

 

The abundance of raw sugar from Mexico, which falls under zero-tariff and zero-quota arrangements with Washington, is the main reason for the oversupply in the US, SRA board member Cocoy Barrera said in an interview with reporters.

 

“Philippine sugar is not as attractive as Mexico sugar, so we will reduce our export volume to the US this crop year,” said Barrera. “But we will be keeping our regular US sugar quota,” he added.

 

In a separate statement e-mailed to the media Thursday, the SRA noted Philippine raw sugar bound for the US fetches millsite prices of P 643 per 50-kilo bag compared to “D” or world market sugar which is P 715 per 50-kilo bag. However, “B” or domestic sugar fetches P 1,435 per 50-kilo bag.

 

The composite price of Philippine sugar is placed at P1,298 per 50-kilogram bag.

 

Still, the Philippines gets to keep it regular US sugar quota of 138,827 metric tons (MT) for the year. 

 

“We have already sought advice from the US government and they have agreed that this will not be taken against us,” said Barrera.

 

A shipload of 23,600 metric tons is set to sail for the US at the end of June, on top of the  27,160 MT of the commodity already shipped to the US, according to the SRA.

 

A final shipment of a still undetermined amount were still being worked out by exporters. “We are still verifying the amount that could be exported,” Barrera noted.

 

The SRA is mulling over an advanced shipment to the US for the next crop year, said SRA administrator Ma. Regina Martin, noting the allocation for “A” sugar will be reduced while the volume for “D” sugar will be increased.

 

The export volume of 180,000 MT for the world market would be kept this year, with 141,000 MT already allotted for for shipment as of June, according to SRA.

 

Philippine sugar production reached 2.448 million MT as of June 2, up by 0.6 percent from revised 2.434 million MT SRA estimate for crop year 2012-2013.

 

With the milling season still open and several millers still operating, the June 2 actual production level will likely increase,  Rosemarie Gumera, SRA manager for policy & planning department, noted in a text message to reporters. — VS, GMA News