SRA cuts sugar allocation for US market
The Philippines has slashed its sugar allocation for the US market to six percent of the total production for crop year 2016-2017, the Sugar Regulatory Administration ( SRA) said.
Based on its latest sugar order, SRA administrator Anna Rosario Paner said 94 percent of the country’s sugar production had been set aside for the domestic market while the remaining six percent would go to the US market.
During the start of the crop year last September, the SRA originally allocated 92 percent for the domestic market and eight percent for the US market, in anticipation for an additional supply requirement from Washington.
“The prior eight percent is more than the US quota of 136,000 MT ( metric tons),” Paner said in a text message.
“They are not making any commitments since there is a new administration,” she added.
The SRA said the domestic market remains the top priority for locally produced sugar to maintain a comfortable buffer or carry-over volume of domestic sugar during the end of season and for the start of the crop year for stable supply and prices.
The Philippines is one of the select countries given an annual allocation of sugar export to the US market at a premium. For this crop year, Manila has a regular US sugar quota of about 136,000 MT.
About 225 MT of sugar has been loaded to US-bound barges with two boatloads expected to leave port next month.
Last crop year, the entire 100 percent production was allotted for the domestic market due to the dry spell brought about by the El Niño phenomenon.
The Philippines expects to produce 2.25 million MT of sugar for the current crop year that started last September.
This production level is suf- ficient to cover the estimated domestic demand of 2.15 million MT, the SRA said.
With ample rainfall in major sugar-producing regions, the SRA expects better sugar production this year.
The country’s sugarcane industry just came out of a challenging year with production falling short of targets due to El Niño.
El Niño resulted to tightness in domestic supply, forcing the government to allow importation of sugar last cropping season to meet domestic requirements and replace its export commitment to the US as drought hit major sugarcane producing provinces.