Thursday, January 15, 2009 NFSP iterates call on 'DX' sugar allocation
ITS request for the Sugar Regulatory Administration (SRA) to "realign DX sugar to another classification" following a continuous decline in sugar production has been iterated by the National Federation of Sugarcane Planters (NFSP).
NFSP president Enrique Rojas, in his letter to SRA Administrator Rafael Coscolluela dated January 13, said: "We wish to officially reiterate the Federation's request presented during the NFSP Joint Board Meeting and General Assembly last January 9, 2009 regarding the re-alignment of 'DX' sugar to another classification of sugar that will be convertible to either 'B' or 'DX' at the later part of the milling season."
"Weekly sugar production is on a decline. Most planters have observed a substantial decrease in their tonnage. Most planters have already finished their harvest for the current crop year whereas they harvested beyond February in the previous crop year. The sugar industry faces the very likely possibility of a drastic drop in production this crop year which might fall short of the very generous SRA estimate," Rojas said.
He said NFSP "strongly urges SRA to 'park' the present 4.5 percent 'DX' sugar allocation into another classification. At the end of the milling season, we can look at the actual production figures and decide whether to convert this new sugar classification into either 'B' or 'DX'."
Rojas said if the planters need to sell their sugar under this new classification, they can sell it at 'DX' prices now. However, if they decide to hold this until the later part of the milling season and if sugar production falls below expectation, this new classification can be converted to 'B'.
The letter also said that this new classification will benefit the producers as it will prevent the DX sugar from leaking into the domestic market. It will also give producers the chance to get better prices for their sugar at the later part of the crop year.
