26 Feb 2025
https://tribune.net.ph/2025/02/25/sra-makes-plans-amid-exports-production-challenges
SIPALAY CITY, Negros Occidental — The Sugar Regulatory Administration (SRA) has announced that it has filled its export allocation of 66,000 metric tons (MT) of raw sugar, aiming to complete this before April to fulfill its US sugar quota and stabilize farmgate prices during the peak harvest season.
“We were hoping to get 120,000 tons of local purchases to export 60,000 or 66,000 metric tons,” said SRA administrator and CEO Pablo Luis S. Azcona during a media briefing in Kabankalan, Negros Occidental. “I was corrected by exporters. I had been saying 60,000, but they told me it’s more efficient to go with 66,000, as the ship can carry 33,000 metric tons or more, which lowers their freight costs.”
Azcona explained that since President Ferdinand R. Marcos Jr.’s administration began, the importance of independently managing export decisions has been emphasized, as it may become a political issue requiring government intervention to maintain the quota.
“The Philippines enjoys one of the largest US sugar quotas per capita — 143,000 metric tons — and we don’t want to lose that,” Azcona said.
For fiscal year 2025 covering 1 October 2024 to 30 September 2025, the Philippines has been allocated 145,235 MT of raw cane sugar to the United States, the third-largest allocation behind the Dominican Republic (189,343 MTRV) and Brazil (155,993 MTRV).
Lessons learned
Azcona reflected on lessons learned since taking the helm at SRA, noting that January, February, and March often see an oversupply of sugar due to peak milling season.
“We produce more sugar than we can consume,” he said. This excess leads to a drop in farmgate prices while retail and wholesale prices remain stable, impacting farmer incomes.
“To create demand and stabilize prices, we export during January, February, and March. Once we have a gap, we import when the harvest ends to replenish exports,” Azcona added.
Exporting early, planning imports
Azcona said the SRA is looking to export earlier this year to ensure that shipments reach the US in optimal condition before the 30 September deadline. “We’re trying to work it out because exporters and the US are actually requesting that we export early — before April,” he said.