THE Sugar Regulatory Administration (SRA) is pushing for the export of “D” or World Market sugar to flush out the country’s current inventory, its top official said.
SRA Administrator Anna Rosario Paner, who was in Bacolod City last week, said the agency, by amending the Sugar Order No. 1, has included 20 percent or about 120,000 metric tons of “D” sugar to the country’s total exports.
Paner said the intention is really to export this classification of sugar to reduce the country’s overhang which will have a downward pressure on domestic prices.
“I don’t have any intention of converting the D to B or domestic sugar because it will surely defeat the purpose of flushing out the inventory,” she said, adding that “we are not doing this for any trading or marketing game.”
SRA is coming up soon with rules requiring some shipping deadlines for “D” sugar to be shipped out. The agency targets the exportation before the crop year ends, or probably last quarter of the year.
The United States of America has allocated for the Philippines an initial quota of 142,160 metric tons raw value (MTRV), or 136,201 metric tons commercial weight (MTCW) for Quota Year 2016 to 2017.
SRA targets to fulfill the US market quota by end of May this year, Paner said.
She added that they have asked for additional quota, however, US and Mexico have ongoing discussions thus, it is not yet certain as to how much will be opened for the country’s sugar.
Mexico has millions of metric tons in sugar quota, she said.
“We have yet to wait whether US will completely close the market to Mexico then distribute its allocation to other sugar-producing countries including the Philippine,” Paner noted.
The US may also just lessen the quota of Mexico then distribute the other requirement to other countries, she added.