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, is calling on the Sugar Regulatory Administration (SRA) to maintain the status quo on sugar classification for the incoming milling season.
AALCPI president Roberto Cuenca, in a statement Tuesday, August 18, said he is recommending 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 in September.
"B" sugar is for the domestic market, while "A" is for US market quota.
Cuenca 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.
The sugar group leader stressed that the "A" sugar quota should be "without replenishment rights."
This was in reference to the sugar order in the last crop year wherein the SRA approved the importation of sugar as replacement for the US quota to address the gap in domestic supply.
Cuenca, however, asked that "the SRA should be on top of the situation" and make sure they have enough and accurate data "to determine if that classification is viable as we forge into the milling season."
He said the demand for sugar usually peaks by December in time for the holidays and the second peak is towards summer.
"But given the present situation, if this continues, the SRA must revisit the classification and respond to it accordingly," Cuenca said.