THE Sugar Regulatory Administration (SRA) said importing refined sugar is expected to allow traders to recover their costs and earn a small profit after shipping raw sugar to the US at a loss.
“Given that these traders (who participated in the US export trade) will also be given the chance to import refined sugar, the cost of money and other fees they incurred will probably give them just a little profit to recoup their expenses,” the regulator said in a statement on Sunday.
Last week, the SRA authorized imports of 240,000 metric tons (MT) of refined sugar. About 176,000 MT will fill any supply gaps that may emerge during the milling off season.
About 30 traders in the US export trade bought raw sugar at an average price of P2,700 per bag and obtained a US export price of P1,800 per bag, resulting in a loss of P900 per bag.
“It will take about 15 days to load the US shipments provided we have good weather,” SRA Administrator Pablo Luis S. Azcona said.
He added that another 30 days is needed for the cargo to reach the US.
Under Sugar Order 3, the Philippines allowed the export of 25,300 metric tons of raw sugar to fill its US sugar quota.
The Philippines has until Sept. 30 to fill the US quota.
Participants in the sugar export program will also be able to import refined sugar.
Mr. Azcona said that the Bacolod City government had also eased its truck ban for those carrying sugar cargo for loading. — Adrian H. Halili
