November 6, 2020
Louise Maureen Simeon (The Philippine Star) | https://bit.ly/37sM3DE
MANILA, Philippines — The Philippines has started the process of filling up the sugar quota for the US market following the issuance of order for the validation of quedan to be eligible for the program.
The Sugar Regulatory Administration (SRA) has advised traders and exporters to apply for export allocations and quedan-permits for verification and processing.
The US has allocated for the Philippines an initial quota of 142,160 metric tons for the current crop year which started in September and will end in August 2021.
The Philippines is one of the select countries given an annual allocation of sugar export to the US market at a premium.
According to the SRA, the US quota allocation will be distributed among the sugar exporters and traded on a “first come-first served” basis.
The agency cited the need to ensure that the full quota is actually shipped to the US after the verification of “A” quedans has been accomplished.
All sugar shipments to the US shall likewise be made on a “first-in, first-out” basis.
In the event the exporter has sold his verified “A” quedan-permits to another party, the allocation of the said exporter is deemed cancelled, in which case, the said “A” quedan-permits shall be again subject to verification by the SRA for allocation on a “first come-first served” basis.
The SRA classifies sugar into “A” for sugar for export to the US, “B” for domestic consumption, “C” for reserves, “D” for export to countries other than the US and “E” for food local processors.
The Philippines has allocated bulk of its target production for the crop year for the domestic market with expected improvements in total output.
Ninety-three percent of the sugar production will be for the domestic market while the remaining seven percent will be for the US market.
The Philippines expects to produce 2.19 million MT of sugar for the crop year, two percent higher than the 2.15 million MT produced in the last crop year.