MANILA, Philippines - The Sugar Regulatory Administration (SRA) has decided to classify all remaining production of raw sugar starting April 19 as “B” for domestic consumption. All other allocations — “A” or for US export, “C” for reserve and “D” for additional exports have been removed.
This was confirmed yesterday by Archimedes Amarra, executive director of the Philippine Sugar Millers Association (PSMA) which is a member of the SRA board.
According to Amarra, the reallocation is in light of the expected shortfall in sugar production for the remainder of this crop year.
The sugar crop year starts in September and ends in August the following year.
Remaining raw sugar production from April 19 by sugar millers is estimated at less than 50,000 tons.
“Since we expect a shortfall, might as well serve local demand,” Amarra said.
Likewise, Amarra said, there is no longer any need to allocate for export since last month, the Philippines exported 137,000 tons of sugar to the US and is expected to complete the export of an additional 11,700 tons this month.
Because of the effect of the ongoing drought, projected output for sugar crop year 2010-2011 has been revised downward to 1.9 million MT from an earlier projection of 2.18 million MT, Rosemarie S. Gumera, head of the SRA’s panning department, said.
Gumera said the drought has affected production this year with the current sugar crop yielding much less than previous years. She said several sugar mills have stopped production.
Meanwhile, only two as of press time yesterday bought bid documents to participate in today’s bidding for tariff-free importation of the remaining 45,100 tons of sugar.
The two are the Gokongwei-owned Universal Robina Corp. and All Asian Countertrade Inc.
Gumera had said that the joint SRA and National Food Authority (NFA) bidding and allocation committee decided to push through with a second bidding “because we saw that the lean months for sugar is approaching and we need buffer stock.