US maintains PH sugar quota for ’15

The Office of the United States Trade Representative (USTR) will maintain the Philippines’ sugar quota allocation of 142,160 metric tons for the fiscal year 2015 that starts Oct. 1.

Data from the USTR show that the Philippines accounts for some 13 percent of 1.12 million tons—the minimum volume of raw cane sugar that Washington is committed to allow into the United States market under a World Trade Organization agreement.

Also, the Philippines has the third largest tariff rate quota on raw cane sugar for US trade partners, after the Dominican Republic and Brazil.

The latest quota for the Philippines is the same as what was allotted during the US fiscal year 2014.

Domestic producers are confident that they will be able to supply the US quota even with rising local demand.

The local industry is looking at a 6-percent increase in domestic output, setting a goal of 2.5 million tons for the 2014-2015 crop year that ends in August next year.

The estimated output for the crop year that is ending this month was originally set at 2.45 million tons. This means that the projection for the following year represents an increase of 2 percent.

Because of damage to farms due to inclement weather, particularly Supertyphoon “Yolanda” which ravaged major producing areas in the Visayas last November, regulators and industry players trimmed the outlook to 2.36 million tons.

According to the Sugar Regulatory Administration’s Sugar Order No. 1 issued in August, domestic consumption is expected to take up 90 percent, or 2.25 million tons, of the estimated sugar production of the coming crop year.

Of the surplus output, 125,000 tons, or 5 percent of the total, has been earmarked for export to the United States.

“With available verified ‘A’ of 11,704 metric tons which were not shipped out to the US this (2013-2014) crop year, the 5-percent allocation would be enough to meet our country’s regular US quota shipment of 136,000 tons,” SRA administrator Regina Martin said in a statement.

“A” sugar refers to stocks that are meant to fulfill the Philippine quota for the US market.

Also, growth in domestic demand in the new crop year is expected at 2 percent over that of the previous year, Martin said.

The rise in volume of 2.25 million tons would account for a per capita consumption of 25 kilos among the 88 million Filipinos living in the country,” she said.