March 18, 2015
Business World by Claire Feliciano | http://goo.gl/Cz9GWs
THE SUGAR Regulatory Administration (SRA) said sugar output is expected to fall below initial projections and has eliminated the export allocation to non-United States (US) markets to make way for domestic use of the commodity.
In an order dated March 12, the SRA approved the amended allocation of the country’s sugar production for the crop year 2014-2015, which ends in August.
The amendment considered the latest reports, which show sufficient sugar for export to world markets, or countries outside the US.
The SRA’s periodic assessment -- which considers production and consumption trends -- also cited “unfavorable weather conditions” that could affect the country’s sugar output for the current crop year.
“The total raw sugar production for crop year 2014-2015 is now estimated to be less than the initial projection of 2.5 million metric tons (MT),” the SRA’s order read.
Maria Regina Bautis-Martin, SRA Administrator, said in a text message yesterday that the latest projection points to an output of 2.46 million MT.
Sugar production is at 1,806,765 MT as of March 8, Ms. Bautista-Martin added.
Some 95% of the domestic sugar crop has been allocated for domestic consumption, up from 90% set by the SRA at the beginning of the crop year.
The remaining 5% will fulfill the Philippines’ raw sugar quota to the US under Washington’s tariff-rate quota (TRQ) scheme.
The TRQ scheme allows countries to export specified quantities of a product to the US at a low tariff. The Philippines’ regular sugar quota is 136,000 MT.
The Philippines shipped to the US 123,147.92 MT -- or 90.5% of the allocation -- in the 2013-2014 fiscal year.
The shortfall was due to an unexpected surplus in US sugar production and additional exports made by Mexico, and not because the Philippines was unable to produce the needed volume.
“This Sugar Order shall take effect immediately covering sugar production of week ending 15 March 2015 and subsequent week endings of crop year 2014-2015,” the SRA said.