Drop in sugar exports seen
Philippine sugar exports may drop to 142,000 metric tons in fiscal year 2011-2012 from the estimated 202,000 tons in the current fiscal year ending on August 31, the US Department of Agriculture said in a report posted on its website.
The American Sugar Alliance, citing the USDA’s monthly production and consumption estimates, said the United States would have some 1.6 million tons of leftover sugar on the market at the end of this fiscal year.
“No problem. The 142,000 tons is our regular US quota,” Archimedes Amarra, executive director of the Philippine Sugar Millers Association, said in a phone interview.
Given the probable dip in US sugar imports, as well as the continuing slowdown in the Philippines’ domestic sugar consumption, the Sugar Regulatory Administration (SRA) said it was allocating 100,000 metric tons for export to the world market (other countries except the US).
SRA Administrator Ma. Regina Martin said the export volume for the world market, which is set aside on top of the export allocation for the US, could still increase depending on the demand.
“We have already received orders from our Asian neighbors, particularly from China, Dubai and Indonesia,” Martin said.
She said the agency did not want to commit a higher volume to the world market yet in order to protect Philippine sugar prices on behalf of the farmers.
