THE PHILIPPINES will export 66,000 metric tons (MT) of raw sugar to the US next month, the industry’s regulator said.
The Sugar Regulatory Administration (SRA) agreed to deliver two boatloads of 33,000 MT each to maximize the savings on freight, instead of the initial decision to ship 60,000 MT, Administrator Pablo Luis S. Azcona said at a briefing, citing input from traders.
Mr. Azcona said segments of the industry, including farmers, oppose sugar exports to the US because it buys the commodity at a lower price.
“Sugar is bought by traders at US prices, which is about P1,000 less than domestic price. That’s why farmers complained,” Mr. Azcona said.
To address farmers’ concerns, the SRA, in Sugar Order No. 2, will give traders who procure raw sugar from farmers at domestic prices “will be given priority” in future government import programs.
The SRA has come up with a list of traders who will be participating in the 66,000-MT export program — the soon-to-be-issued SO No. 3.
“The farmers said the SRA and government can do whatever they want as long as the farmers do not have to subsidize exports,” he said.
He said all exports will consist of sugar initially purchased from farmers at the domestic price.
Mr. Azcona said the Department of Agriculture will likely oversee the export program to address the US quota allocation for 2025.
He noted that the Philippines has the third-largest US quota for raw sugar, a status that it wants to maintain.
The new arrangement calls for traders to absorb the losses from selling at the US price, to be offset by any gains they may realize from imports.
Traders in the program will be allowed to import 2.5 kilograms of refined sugar for every kilogram of raw sugar exported. The 66,000 MT export shipment implies plans to import 165,000 MT of refined sugar.
“The exporters export at a loss and they make it back with imports,” he added. — Kyle Aristophere T. Atienza
