Additional Sugar Exports to the US Market Eyed in ‘09
The Sugar Regulatory Administration (SRA) yesterday said it was hoping the Philippines would get 60,000 to 65,000 metric tons in additional sugar quota allocation from the United States by April next year.
SRA Administrator Rafael Coscolluela said about 137, 000 metric tons of sugar had been earmarked for export to the United States under the quota system in crop year 2008-2009, which started Sept. 1 this year and will end on Aug. 31 next year.
“We are anticipating an increase in the US’ sugar imports by at least 500,000 metric tons in April. The Philippines’ share is normally 13.5 percent of the total quota,” Coscolluela said.
The move is expected to help the Philippines siphon off excess sugar from the domestic market. The country posted a 25-year high sugar production (2.455 million metric tons) in crop year 2007-2008 and this led to a surplus of 611,000 metric tons, which the SRA considers “uncomfortably big.”
Ideally, the ending inventory for every crop year should be around 300,000 metric tons, which would be enough to meet the requirements for two months.
Coscolluela said an increase in the US sugar quota allocation would also help move sugar stocks faster, which is what the SRA has been doing through “advance swapping” of B sugar (for domestic market) to A sugar (for US quota) and the creation of an F quedan (fermentable sugar for biofuel production).
“If we move sugar, we would have less carryover in the following crop year,” he said, noting that the big sugar surplus was the reason for the depressed buying prices.
“I was just informed that sugar is being bought at only P950 per 50-kilogram bag, from a high of P1,200 late last year,” he said in an earlier interview.
Last month, the SRA allowed the conversion of “D” sugar for world export to “F” sugar, which will be used as feedstock for ethanol production.
The F (fermentable) quedan is a new sugar classification that the SRA had put up to assure ethanol plants of adequate feedstock supply.
This conversion is allowed only for the current crop year, and applicable for the sugarcane to be harvested beginning Dec. 7 this year.
Coscolluela said the maximum volume that could be converted to F sugar would be equivalent to 64 percent of the D sugar allocation (which is 7 percent), or about 4.5 percent of total production.*
SRA Administrator Rafael Coscolluela said about 137, 000 metric tons of sugar had been earmarked for export to the United States under the quota system in crop year 2008-2009, which started Sept. 1 this year and will end on Aug. 31 next year.
“We are anticipating an increase in the US’ sugar imports by at least 500,000 metric tons in April. The Philippines’ share is normally 13.5 percent of the total quota,” Coscolluela said.
The move is expected to help the Philippines siphon off excess sugar from the domestic market. The country posted a 25-year high sugar production (2.455 million metric tons) in crop year 2007-2008 and this led to a surplus of 611,000 metric tons, which the SRA considers “uncomfortably big.”
Ideally, the ending inventory for every crop year should be around 300,000 metric tons, which would be enough to meet the requirements for two months.
Coscolluela said an increase in the US sugar quota allocation would also help move sugar stocks faster, which is what the SRA has been doing through “advance swapping” of B sugar (for domestic market) to A sugar (for US quota) and the creation of an F quedan (fermentable sugar for biofuel production).
“If we move sugar, we would have less carryover in the following crop year,” he said, noting that the big sugar surplus was the reason for the depressed buying prices.
“I was just informed that sugar is being bought at only P950 per 50-kilogram bag, from a high of P1,200 late last year,” he said in an earlier interview.
Last month, the SRA allowed the conversion of “D” sugar for world export to “F” sugar, which will be used as feedstock for ethanol production.
The F (fermentable) quedan is a new sugar classification that the SRA had put up to assure ethanol plants of adequate feedstock supply.
This conversion is allowed only for the current crop year, and applicable for the sugarcane to be harvested beginning Dec. 7 this year.
Coscolluela said the maximum volume that could be converted to F sugar would be equivalent to 64 percent of the D sugar allocation (which is 7 percent), or about 4.5 percent of total production.*