THE PHILIPPINES has allocated the bulk of this crop year’s sugar output to the domestic market amid an expected decline in production, though the regulator said it will be able to meet its US export commitments and ship some product to other markets as well.
In Sugar Order No.1 dated Aug. 31, 2017, the Sugar Regulatory Administration (SRA) board said sugarcane performance for crop year 2017 to 2018 is expected to hit 2.38 million metric tons (MT), down 4.8%.
Output for the crop year is also expected to cover the domestic requirement of “more or less” 2.17 million MT, with 1.9 million MT or 80% of total estimated production set aside for the Philippine market.
The Philippines consumes nearly 200,000 MT of sugar a month.
A sugar crop year in the Philippines runs from September to August.
Of the total 2.38 million MT production expected for this crop year, the US and other markets have been given 10% allocation each.
“In order to promote the effective merchandising of sugar and its products in the domestic, US and world markets, it will be necessary to allocate the crop year 2017-2018 sugar production to such quantities as to place those engaged in the sugar industry on a basis of economic viability,” the sugar order read.
“The US market continues to be a reliable market and remains an instrument to stabilize sugar supply that its allocation is imperative regardless of volume,” it added.
For this crop year, Manila has a regular US sugar quota of 138,827 MT in regular form or 142,160 MT in raw form. The volume may increase depending on Washington’s assessment of the stability of its stocks. The Philippines is one of the few countries given an annual allocation of sugar export to the US market under a quota scheme.
The SRA board added that it will continue to conduct periodic assessments of production for future adjustments of allocation and distribution. — Janina C. Lim
