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PH cuts sugar exports to US, world market

Published Jan 26, 2018 12:00 am
By Madelaine Miraflor The Philippine government decided to cut the country's sugar exports to United States and other countries to meet domestic demand which is expected to be around 2.17 million metric tons (MMT). “The domestic market remains as the priority market for locally produced sugar, and it is of national interest that there is a comfortable buffer, or carry-over volume, of "B" sugar during the end of season and for the start of the next crop year for stable supply and prices,” SRA said. (Photo by Michael Varcas/ Manila Bulletin File Photo) (Photo by Michael Varcas/ Manila Bulletin File Photo) Based on Sugar Order (SO) No. 1-A, the Sugar Regulatory Administration (SRA) reduced the allocation of sugar to US ("A") from 10 percent to 6 percent, while the allocation of world market sugar (“D”), or those for export to other countries, was also cut to 1 percent from 10 percent. Under the tariff-rate quota (TRQ) — which allows countries to ship sugar to US at a relatively lower tariff — the Philippines exports about 136,000 metric tons (MT) of sugar to the US every year. SO 1-A also increased the country's sugar allocation to domestic market ("B") to 93 percent from the 80 percent. Forecast on the local production of raw sugar—which starts in September and ends August of the following year—is also reduced for the crop year (CY) 2017 to 2018.   The SRA estimates it to be less than 2.38 MMT on the weight of unfavorable weather conditions.
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