Sugar seen enough for exports, holidays
MANILA, Pjilippines—Although the Philippines continues to export sugar, there is still enough of the commodity to meet the traditional surge in domestic demand during the holidays, according to industry experts.
Industry data show that 63,193 metric tons of sugar shipments to the United States will be completed by October 2011.
In addition, 122,943 tons have been shipped out to destinations such as Indonesia, China, Japan, South Korea, Vietnam and Taiwan.
On top of this, another 56,122 tons of sugar are scheduled to be shipped out in October and November.
Some 38,000 tons of swapped “B”-to-“D” (excess domestic stocks reclassified as world market sugar) will also be exported before the end of 2011 as planned.
Philippine Sugar Millers Association executive director Archimedes Amarra said in a phone interview that “milling has started, so there will be enough supply of sugar.”
Sugar milling is expected to go in full gear by November.
The Sugar Regulatory Administration (SRA) said in SRA Order No. 4 Series of 2011-2012 that traders have until October 31, 2011, to apply for the swap of excess domestic or “B” sugar to world market or “D” sugar.
“Only old crop quedan-permits of crop year 2010-2011 shall be eligible for this purpose,” according to the SRA order signed by administrator Ma. Regina Bautista-Martin.
Crop year 2010-2011 ended on Aug. 31, 2011.
Under the swap scheme, accredited traders will return to local stocks the equivalent amount of “B” sugar they had reclassified into “D” sugar. The replenishment will be done next crop year (which ends Aug. 31, 2012) based on domestic need, according to the SRA.
The Philippines has four classifications of sugar: “A” for the US market, from which Philippine sugar enjoys premium price; “B” sugar for domestic use, which takes up about 90 percent of the country’s sugar inventory; “D” sugar for non-US exports, for which there is no fixed volume; and “C” or reserve sugar, which can be converted into any of the three other categories.
