Philippines Gets Additional Sugar Export Quota from U.S.

The Philippines received an additional sugar export quota of 19,648 metric tons from the United States, the Sugar Regulatory Administration said.

The agency said the voilume was over and above the 60,000 additional allocation announced in April 2011, after lobbying efforts of the Philippines with the US Trade Representative and the US Department of Agriculture.

The SRA said the Philippines was capable of supplying the volume to the US after shipping out 60,000 tons to the US.

The agency said a total of 140,850 metric tons were shipped out to the US and that 52,835 tons were ready for loading to fully comply with the regular US quota of 136,200 tons and the first additional quota of 57,485 tons.

The Philippines is one of the preferred countries enjoying an annual sugar tariff rate quota to the US market. The US gives premium to imported raw cane sugar from preferred countries.

The tariff rate quota allows countries to export specified quantities of a product to the United States at a relatively low duties.

Meanwhile, the quantity of world market, or "D" sugar, ready for shipment to the international market reached around 25,000 metric tons as of July 7.

The sugar agency has extended the deadline for shipping sugar to the world market for another three months until December 2011 to avoid surplus and ensure that domestic sugar prices will remain stable.

Local production of raw sugar reached around 2.36 million tons for the current crop against domestic withdrawals of around 1.46 million metric tons as of June 26.

The agency has also allowed "B" sugar holders to export sugar. Only "D" sugar holders are traditionally given permission to export sugar.

"B" sugar refers to sugar allocated for domestic consumption while "D" sugar is designated as sugar for world export.

SRA administrator Ma. Regina Bautista-Martin said the Philippines expects a significant volume of carry-over stocks of "B" or domestic sugar resulting in excess supply.