TWO of the major sugar groups in the country have welcomed the approved sugar allocation percentage of seven percent for "A" sugar and the remaining 93 percent for "B" sugar for crop year 2020 to 2021.
"B" sugar is for the domestic market, while "A" is for US market quota.
For the Asociacion de Agricultores de La Carlota y Pontevedra Inc. (AALCPI), the second biggest group of sugar farmers in the country with over 10,000 membership, its president Roberto Cuenca said the Board of Directors will follow and abide with the decision of the majority.
The AALCPI previously called on the Sugar Regulatory Administration (SRA) to maintain the status quo on sugar classification for this milling season.
It has recommended to the SRA in its issuance of Sugar Order 1 to classify 95 percent of sugar produce as "B" sugar and five percent as "A" sugar for this crop year which will start this month.
Cuenca earlier said such percentage classification takes into consideration the present situation and the balance between ensuring sufficient domestic supply while maintaining the status quo of a readily available export market to the United States.
"Although we like to have an all-B classification, we cannot be assured of the demand in these times and so we have to maintain the balance," he added.
On August 31, the Sugar Board chaired by Department of Agriculture Secretary William Dar approved a resolution approving the draft Sugar Order 1 Series of 2020 to 2021 or the "Sugar Policy for Crop Year 2020 to 2021."
Majority of the members of the Board voted affirmative in favor of the SRA Management's recommended sugar allocation percentage of seven and 93 percent for "A" and "B" sugar, respectively.
The approved amended draft signed by Dar, SRA Administrator and Board vice president Hermenegildo Serafica, and members Roland Beltran and Emilio Yulo IIII representing the millers and planters, respectively, is in accordance with the applicable SRA policies and subject to other existing laws, guidelines, circulars, rules and regulations, the resolution stated.
The Confederation of Sugar Producers (Confed) Negros-Panay Chapter, who earlier pushed for six percent "A" and 94 percent "B" sugar, is a bit apprehensive of the approved sugar allocation percentage.
Its chairman Nicolas Ledesma Jr. said they think that the additional one percent estimated to be about 153,000 metric tons (MT) over the initial US market quota of 136,000 MT might create problems due to demand in the US because of the coronavirus disease (Covid-19) pandemic.
"But, we can live with that for as long as we have no 'D' allocation and no sugar importation for crop year 2020 to 2021," he added.
It can be recalled that Confed has been pushing for higher allocation of "A" sugar intended for the US market by a percentage higher than last year's quota.
This is to balance the sugar supply in the country that is projected at 2.190 million MT for crop year 2020 to 2021 compared to 2.145 million MT during the last year's production, it added.
Prior to the approval of the resolution setting the new sugar allocation, other sugar groups also submitted their position.
The seven percent "A" sugar was pushed by the Philippine Sugar Millers Association and United Sugar Producers Federation of the Philippines.
The National Federation of Sugarcane Planters, on the other hand, proposed for three percent "A" sugar allocation.