PH eyes additional US sugar quota

The Philippines is well on its way to achieving its target raw sugar output this crop year, according to industry figures. About 1.86 million tons of sugar had been produced as of March 25, 2012.

The target is 2.15 million tons to 2.24 million tons sugar by the end of the current crop year on Aug. 31. This puts current production at 86.5 percent of the lower end of the target range.

Sugar Regulatory Administration records as of March 25, 2012 show that Negros is leading production with almost 1.08 million tons. Mindanao was a far second with 354,858.42 tons. Luzon followed with 264,276.29 tons while Panay has chalked up 115,282.06 tons and Eastern Visayas, 50,451.53 tons.

Sugar mills have reported higher withdrawals compared to the previous crop year but supply is expected to remain stable.

With production on target, the Philippines is ready to complete its U.S. sugar quota of 138,827.30 tons for fiscal year 2011-2012. Of the total regular quota, the last shipment of 20,163.23 will be made this month.

In the meantime, the Philippines is awaiting the US Trade Representative’s announcement on any additional quota that the country can fill for the same fiscal year.

“Under the US Farm Bill, announcements for additional quota are to be made after April 1, so we are waiting for the USTR’s announcement. We are hopeful that we can get an additional quota of 60,000 tons to 100,000 tons,” said Jesus L. Barrera, legal officer of the Philippine Sugar Millers Association, in a phone interview.

Barrera said the extra quota, which the Philippines was aiming for, was based on industry feedback from abroad. The US sets sugar quotas based on stakeholder consultations and on supplier-countries’ reliability.

The US pays premium price for Philippine sugar ordered under its quota system.