US trade office maintains PH sugar quota

The Office of the United States Trade Representative (USTR) has maintained the Philippines’ sugar quota allocation at 142,160 metric tons for its fiscal year 2016 that starts Oct. 1.

Data from the USTR show that the Philippines accounts for about 13 percent of 1.12 million tons, the minimum volume of raw cane sugar that Washington is committed to allow into the US market under the 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 (at 185,335 tons) and Brazil (152,691 tons).

The latest quota for the Philippines is the same as what was was allotted during the US fiscal year 2015 and 2014, but it is lower than the 144,901-ton allocation in 2013.

Last month, the Sugar Regulatory Administration moved to shore up domestic supply, issuing an order that effectively earmarked all domestic output from June to July for local consumption.

Also, the SRA allowed the conversion of stocks allocated to foreign markets other than the US into stocks for domestic use.

Through Sugar Order 1-B dated June 1, the SRA ordered the full allocation to the domestic market of raw sugar produced starting the week that ended May 1.

This lasts until the end of August, which also marks the end of the current crop year for sugar.

Further, the SRA issued Sugar Order No. 7 also dated June 1, which allowed the conversion of sugar for export to non-US destinations, “subject to certain conditions.”

“This conversion program expects to add a maximum of 75,000 metric tons to the domestic market,” the SRA said.

According to the state agency, it has verified that there was significant volume of the so-called “D” sugar—stocks that are meant for non-US export markets—from this crop year and from the previous crop year that were not shipped out.

SRA data show that for the current crop year, domestic production is expected to have reached some 2.3 million tons as of May 24—exceeding the expected demand of 2.25 million tons.

Even then, the SRA said it was making sure that there was enough buffer supply for the start of the next crop year.