US imports 50,000 MT of sugar from RP

The Philippines exported 50,000 metric tons (MT) of raw sugar to the United States as part of the government’s effort to stabilize sugar supply in the US following the destruction of US sugar crops by typhoon Katrina.

Ma. Victoria Magcase, director of the Philippine International Trading Corp. (PITC), said the country completed exporting the 50,000 MT of raw sugar to the US only last September under the counter-trade sugar swap program (CSSP) between the two countries.

The 50,000 MT shipment was in compliance with the allocation awarded by the US Department of Agriculture to the Philippines.

This is the second time in 10 years that the US has given the Philippines an allocation for raw sugar exports.

In 1996, the US awarded the Philippines a 200,000 MT sugar allocation.

Magcase said the US had to import raw sugar to keep its sugar supply stable following typhoon Katrina which affected major sugar-producing states in the US such as Louisiana.

The required 50,000 MT of raw sugar was exported to the US by eight companies selected by the Sugar Regulatory Authority (SRA) based on a set of qualification criteria.

It was also the SRA which set the export allocation for each participant.

"The implementation of the CSSP is not just being done by the PITC. It is also being implemented in consultation with the SRA and the domestic sugar industry," Magcase said.

The PITC, the agency tasked to facilitate the government’s counter-trade services, earned P10 million from the deal by charging a P10 service fee on each sugar bag exported to the US.

Magcase assured that despite the sugar exports to the US, there is still sufficient supply of sugar in the Philippines since the counter-trade scheme allows the Philippines to import refined sugar commensurate to its exports.

The Philippines, she said, has so far imported 49,971 MT of refined sugar to meet domestic demand.

The imported sugar is cheaper, Magcase said, because it is tax and duty-free.

"While we exported raw sugar to the US, we also imported refined sugar which is actually a lot cheaper since it is imported tax and duty free," she explained.

Magcase said the PITC is willing to facilitate the export and import of sugar but the USDA has not indicated a possible allocation for the Philippines.