Sugar for export may now be diverted for local use
MANILA -The Sugar Regulatory Administration (SRA) is allowing the reallocation of unused sugar originally intended for the global market for domestic use to address the growing demand for this commodity.
The SRA issued two different guidelines on the reinstatement of so-called homeless “A” (sugar for export to the US) and “D” quedans (for the world market) and the reclassification of such for the local market, subject to certain conditions.
It promulgated Sugar Order (SO) No. 8 and SO No. 9, respectively, to “augment the volume of sugar to be made available for domestic consumption” and “help alleviate the tightness in the domestic sugar supply for crop year 2022-2023.”
According to the SRA, it saw the necessity to stabilize the supply and selling prices in the local market.
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It has received requests for the conversion of sugar intended for US and world markets which have remained unshipped—called homeless in the industry—and “could be utilized to alleviate the perceived tightness in domestic sugar balance.”
Likewise, the agency received various queries and requests for reinstating homeless “A” and “D” sugar quedans.
Some 11,432 metric tons (MT) for “A” sugar and 5,478 MT for “D” sugar have remained outstanding, based on the SRA’s final report on raw sugar balances as of Nov. 20, 2022.
The actual raw production inched up by only 0.37 percent from the last crop year.
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Under the first SRA guideline, only its board holds the authority to approve requests for reassigning sugar for export to local consumption.
Traders need to pay a fee of P15 per 50-kilogram bag upon filing the request for the reinstatement of homeless “A” and “D” sugar quedans.
The SRA has set a deadline of Aug. 4 for accepting applications for reinstatement.
In another order, the SRA said any verified unshipped “A” and “D” sugar quedans issued for crop year 2020-2021 and previous crop years can be reclassified or converted on a voluntary basis.
This is valid only for crop year 2023-2024.
Holders of verified unshipped “A” and “D” sugar quedans may lodge their application for conversion to “B” sugar not later than Aug. 15. The SRA will not be accepting late applications. INQ
