RP keeps share in US sugar import quota

The Philippines maintained its 13.5-percent allocation in the sugar import quota of the United States which has been set at 1.117 million metric tons. The Philippine quota is equivalent to 137,000 metric tons (commercial weight) with the first shipment to be delivered anytime between late December and the first quarter next year.

Agriculture Undersecretary Cesar Drilon (for livestock and fisheries), who chairs the governing board of the Sugar Regulatory Administration, said the shipments will be sourced from the expected output for the current crop year of 1.87 to 1.88 million metric tons.

The Philippines is the third top supplier of sugar to the US, with the top slot occupied by the Dominican Republic with 185,335 metric tons followed by Brazil with 152,691 metric tons. The fourth is Australia with 87,000 metric tons. There are 40 countries supplying the US quota market.

The US is one of the most attractive markets for sugar as it offers a much higher price of compared to the global market prices of 6 to 7 US cents per pound.

Drilon said even with an expected El Niño during the first quarter, the projected sugar output will not be adversely affected (especially if the crops are ready for harvest) since sugar quality is improved with less water.

The DA has not yet determined the amount of sugar to be imported under its commitment with the World Trade Organization under the minimum access volume (MAV) program as this would depend on the actual output for 2002. The MAV for 2001 is 54,000 metric tons. All shipments under MAV are covered by in-bound tariff of 65 percent while those not covered by MAV are slapped a tariff of 85 percent.

Drilon said local sugar supply is sufficient at more than two months worth of requirements, with the monthly demand placed at 150,000 metric tons.

Because of stable supply, retail prices have been maintained for quite a long period at P26 to P28 per kilo for white and P23 per kilo for raw.

Panay Island and Negros had been badly hit by Nanang – the storm that also devastated vast tracts of rice and corn fields last October – and sources believe this could lead to a downscaling of the production goals for crop year 2002, which will be milled by September next year. Initial reports from the research and development office of SRA showed that 50,000 metric tons are believed lost from Nanang.