SRA wants US as export market for raw sugar: Philippines

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The Sugar Regulatory Administration (SRA) is studying how to keep the US as an export market for raw sugar despite the country's struggle to produce the commodity.

The US maintained the Philippines' sugar allocation at 145,235 metric tons raw value (MTRV) this crop year Oct. 1, 2023 to Sept. 30, 2024.

The allocation is the third largest next to Dominican Republic (189,343 MTRV) and Brazil (155,993 MTRV).

The US in-quota allocation for crop year 2023-2024 is placed at 1.117 million MTRV, the minimum amount committed by the US to the World Trade Organization.

However, SRA acting administrator Pablo Luis Azcona said the allocation was not used in the past three years.

SRA data showed the last time the Philippines exported to the US was in crop year 2020-2021 when it shipped 112,008 MT.

'We are trying to find ways… It's very hard to justify because we are importing. However, we import refined sugar and the US market needs raw, which is locally produced. The quotas come to mind has been suggested by various stakeholders but we need to study it,' Azcona said.

The SRA is now inquiring whether the country will lose the US market if it does not serve the allocation again this year.

The agency has also asked the sugar industry to submit their studies or proposals on how to balance local production and export to the US.

For this crop year, Sugar Order (SO) 1, which will be issued soon, will focus the country's sugar production to 'B' or the domestic market.

'My request to the people who brought up idea was come out with very good proposal. Number one, it should not affect farmgate price of the farmer,' Azcona said.

'Basically, SO1 is purely domestic. If there is such a need so that we do not lose the quota and for other reasons, I'm just waiting for the proposal from the various stakeholders, so we can see if we really need to do it,' he said.

Nonetheless, the SRA is keen on keeping the US market given its attractive price point, especially for sugarcane farmers.

'Even though we are running at a deficit every year, it is so hard to lose the US market. US is a premium market compared to the world market. If you're a local farmer, domestic is always highest, US is next, then lowest price is world. It's a shame to lose such a good market,' Azcona said.

Moreover, the world market is also projected to have a possible shortage from negative developments in major sugar producing countries, which the Philippines could take advantage of.

'Thailand is having bad weather, and it's seeing a decrease of 30 percent. Thailand is one of the biggest exporters. Brazil is the only country saying they will improve, but does not share in Asian side because it's too far, and it usually shifts to fuel and power when they have too much sugar. India has announced they will not export because they are short, so they will not export and they are looking at importing one million MT. More or less, the global prices are constantly going up,' Azcona said.