August 20, 2024 | 12:00am
BACOLOD CITY, Philippines — To meet its quota commitments, the Philippines is exporting 25,300 metric tons (MT) of raw sugar from Negros Occidental to the United States.
Sugar Regulatory Administration (SRA) administrator Pablo Luis Azcona said the Philippines was previously unable to meet its US export quota commitments due to insufficient output.
Last month, the SRA approved the export of such volume to fulfill the country’s US sugar quota allocation.
“The intention of this voluntary US export of 25,300 MT of locally produced raw sugar is to allow the Philippines to fulfill – after non-compliance of more than three years – its obligations under the significantly reduced US Raw Sugar Tariff-Rate Quota World Trade Allocation,” according to Sugar Order 3 issued by SRA.
The raw sugar is now being loaded onto a cargo vessel docked at the Bredco Port in Bacolod for shipment to the US.
Azcona, who inspected the manual loading on Saturday, thanked the traders who participated in the program, even if they are exporting sugar now at an estimated loss of P900 to P1,200 per bag.
About 30 sugar traders heeded the call of the administration last year to buy domestic sugar to stabilize farmgate prices that dropped to a low of P2,400 per bag.
In exchange, the program allowed these traders the opportunity to import and export when needed.
These traders bought raw sugar then at an average price of P2,700 per bag and sold it at the US export price of P1,800 per bag or a loss of P900 per bag.
Given that these traders 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, Azcona said.
With an estimated 1,500 MT being loaded every day, he said it will take 15 days to load the shipment, if weather permits, and 30 days more for the cargo to reach the US.
Azcona also thanked Bacolod City Mayor Alfredo Abelardo Benitez for lifting the truck ban for sugar loaded trucks en route to the port to hasten the loading of US bound sugar.
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