RP to export 30,000MT raw sugar in next six months

Sugar producers are exporting an initial 30,000 metric tons (MT) of raw sugar to the world market in the next six months as part of the industry’s effort to dispose surplus production and keep domestic sugar prices stable.

An official of the Philippine Sugar Millers Association (PSMA) said negotiations were firmed up recently for the export of 30,000 MT raw sugar pegged at P450 per 50-kilogram bag.

The PSMA official said the first 10,000 MT will be shipped to a US-based commodities trading house this October. The balance will be shipped in December or early January next year.

Talks are underway with potential buyers of another 30,000 MT of raw sugar.

Other sugar producers and millers organizations are also negotiating with international trading houses. The Confederation of Sugar Producers Inc. is reportedly selling 35,000 MT; National Federation of Sugar Planters, 20,000 MT; Panay Sugar Producers Federation, 5,000 MT and United Sugar Producers Federation, 10,000 MT.

The local sugar industry is mulling exports of at least 232,000 MT of sugar to the world market, including Japan to prevent the skid of domestic sugar prices that would likely result from the anticipated surplus production this year.

The volume includes a quota of 137,000 MT to the United States, which Washington imports at a premium price as part of its commitment to support developing sugar-producing countries like the Philippines.

Local sugar production in the current cropping season is expected to reach 2.3 million MT, higher than the projected national consumption of only 2.06 million MT. The sugar cropping season starts in September and ends in August of the following year.

Previously, the country shipped 60,000 MT of sugar to South Korea, Japan and China, on top of the 137,353 MT of "A" sugar allocated under the quota scheme to the United States.

Earlier this year, the sugar industry lobbied hard for the government to buy some 70,000 MT of excess sugar to prevent the further decline of prices which went down to as low as P620 per 50-kilogram bag. Millgate prices fell because of a supply glut, along with the influx of smuggled sugar.